Chairperson, in the process of responding to inputs by hon members I would like to take this opportunity to complete part of my speech which was not completed during the time allocated to me earlier. This part will actually speak to the issues that members have raised.
Later this evening, as the Deputy Minister has indicated, we will be formally launching the South African National Energy Development Institute, Sanedi. The institute will continue with the carbon capture and storage work, which will culminate in the selection of a site for a CO2 test injection project planned to commence in the 2016-17 financial year. This is a way of protecting our coal reserves, because we do have coal and we need to invest in technologies that can protect the reserves that we have.
The Grand Inga Dam memorandum of understanding, MOU, signed with the Democratic Republic of the Congo, is an important milestone in working towards sustainable African partnerships aimed at developing strategies for low carbon economies and interconnected energy systems. Located on the Congo River, the Grand Inga project is expected to generate approximately 40 000 MW of hydroelectric power for regional distribution.
The Cesul project in Mozambique will improve the ability to evacuate power from the projects in the Northern Mozambique complex, Mrs Dudley, particularly releasing the hydropower potential relating to Mpanda Nkuwa and Cahora Bassa, amongst others. We are also engaging with Mozambique and Namibia with regard to the gas finds. The two countries have gas commissions together with South Africa so that we are able to work together.
The South African Renewables Initiative aims to establish and facilitate an international financing partnership to enable investment in the deployment of renewable energy, as well as the development of industrial capabilities associated with renewable supply chains through securing a critical mass of renewable energy, without imposing an undue burden on the fiscus or the South African consumer.
Ladies and gentlemen, you will have realised that the ANC members of the portfolio committee, from the chairperson to Mr Moloto, have indicated the challenges that we have with regard to the budget. You will have realised that some of the programmes and projects that we have, and that we as the energy sector need to drive, will necessarily be delayed, because we still need to get additional resources. The South African Renewables Initiative, SARI, is one of those that we have placed before the National Treasury for additional capacity and financial support, and we will be engaging further with that.
I need to thank the portfolio committee. I must say it, and I would be failing if I didn't, as it is in my speech. It has very active members who make it possible for us to engage with matters that affect the day-to-day issues related to energy in South Africa. It gives us leadership and also makes it possible for us to be responsive to the needs of the people of South Africa.
I also want to thank the leadership and management of state-owned companies that report to the department and the Ministry of Energy, for their ongoing engagement and support. I want to indicate that we have done quite well. Most of our state-owned entities are driven by women. [Applause.] Dr Sankie Mthembi-Mahanyele is the chairperson of the Central Energy Fund, CEF. She is here in the gallery. She is very capable, and she is one of those who are going to drive the transformation and restructuring of the CEF and its entities that we are talking about.
The chair and the CEO of the National Energy Regulator of South Africa, Nersa, are women. You all know that Adv Phindile Nzimande is the CEO of Nersa and Ms Cecilia Khuzwayo is the chairperson. We also have a brand-new CEO of the Petroleum, Oil and Gas Corporation of South Africa, PetroSA. She is also a woman, for that matter. The industry, the private sector that we have been talking about, has been telling us that there are no women in this country to run the oil and gas sector and we have proven them wrong. Here we have them. They say dynamite comes in small packages. There she is in the gallery!
I also want to thank the Deputy Minister for the support and contribution to the energy sector. To the Director-General, Nelisiwe Magubane, and Team Energy, thanks for the hard work and dedication against all odds. I want to indicate, director-general, that you are doing quite well with your team. That shows that if you want a job done, you must give it to a woman to do! The energy sector is driven by women and we will show you that we can deliver against that. [Applause.]
I want to thank the ministerial staff and the protectors for their support. In particular, I want to thank my family, especially my two girls, for their love, patience and sacrifice, knowing that we all belong to a bigger family that is working together for a better life. It is important that we remember that in the process of doing our work we are sacrificing our families.
Hon Smalle, I know that you are very interested in matters of the Central Energy Fund, but I want to indicate to you that not a single cent of the motorist has gone into the coffers of the Central Energy Fund. There were no losses, but write-offs due to an upstream investment which by its very nature is very risky, and it was an inquest for energy security. In the year of the write-off the Central Energy Group declared a profit of R1,2 billion and this took place during tough global economic conditions.
The Strategic Fuel Fund, SFF, will remain a strategic petroleum reserve vehicle, separate from PetroSA. E-Gas and PetroSA are both responsible for gas infrastructure development. The only difference is that PetroSA is involved in using the infrastructure to produce fuel. Therefore, it does not make sense to have two subsidiaries in the same stable involved in gas infrastructure. It is important to understand that e-Gas and PetroSA are both subsidiaries of SFF. It is important to make sure that we streamline them.
On energy efficiency I want to indicate that the hon Greyling was not listening to my speech. We targeted saving 1 TW hour and we have exceeded this target by 40%. That is why I said we needed to congratulate Eskom. The United Nations Industrial Development Organisation, Unido, has records. We will give you the report that Minister Davies and I received from Unido that indicated that energy efficiency was starting to bear fruit in South Africa.
Hon Greyling, to say that nuclear energy, as part of the modelling of the department, is more expensive is not true. The modelling indicated that the plan without nuclear energy would increase the emissions. We have always said that we brought in nuclear energy because ours is an economy that is energy-intense, so as to be able to make it possible for us to respond.
In the same speech you spoke about the Energy Intensive User Group, who are complaining about a lack of confidence in the availability of supply. When we look at ways of intensifying the supply, you also complain. What is it that you would like us to do?
The hon Alberts asked what the "frack" I am talking about! But then, after saying that, his speech just "fracked"! [Laughter.] I want to say that it is important that we remember that whatever we are doing in South Africa, we are doing in the best interests of the people of South Africa. We cannot sit here and salivate about the gas that is available in Mozambique without testing whether it is true that we have gas in South Africa.
We have been told about unconventional gas - coal bed methane, CBM, and shale. We are calling on the Department of Science and Technology to investigate, and invest in the technologies, if there is a better way of liberating that gas. I am happy that our own subsidiaries, including our entities like PetroSA, have indicated that they are also investing in technologies to look at the energy of the future and how the fuel of the future will be produced.
Imagine what would happen in South Africa with the available gas. They say that just 10% of that gas would be able to do for us what has been done for Qatar. Who are we not to want to test it?
Hon member Radebe said that today is Ascension Day, and I'm happy that a member of the ANC has reminded us of this important day, when Jesus ascended to heaven to be at the right hand of God and to be able to make a place for us in the Father's mansion. It would be wrong for us not to use the resources that God has blessed us with. These are blessings that God has given us, and we need to exploit them for the benefit of the people. The people of the Karoo are going hungry and if there are job opportunities ... [Time expired.]
Debate concluded.