Good morning, and thank you, Chairperson. Hon Chairperson, Minister of Energy, Ms Tina Joemat-Pettersson, hon chairperson of the Portfolio Committee for Energy, Mr Fikile Majola, fellow members of the executive, Members of Parliament, acting director-general, senior members of staff, invited guests and stakeholders, I would like to add my voice in thanking the millions of our people who have once again placed their faith and confidence in the ANC. We are humbled and we will not betray their trust. [Applause.]
The ANC-led government has correctly identified energy as an apex priority for the attainment of economic growth in the fight against the triple challenges of unemployment, poverty, and inequality. It is with the overwhelming mandate you have given us that we are here today to outline how we plan to tackle the scourge of joblessness in a very challenging global and economic environment. We do this as part of a larger collective of government across the three spheres. We are cognisant of the fact that we cannot do this alone, and we will work together, hand in glove, with our people and the organised formations of labour, business and civil society.
The National Development Plan, NDP, has outlined the need for an energy sector that promotes economic growth and development, social equity through expanded access to energy services, and environmental sustainability through concerted efforts to reduce pollution and the mitigation of the effects of global climate changes.
The ANC manifesto identified access to reliable energy supply in all its forms as a priority for this administration. The 2014 state of the nation address of the head of state, President Jacob Zuma, has put energy at the centre of economic development for the country. The right combination of policies and technologies is strategically important to ensure that the links between economic growth, the increasing energy demand and the associated energy related carbon dioxide emissions are managed as we increase our energy generation capacity. It is thus important that our energy policies address issues of energy access, sustainability, affordability and appropriate quality of services for the end-user. I'll expand on this matter a little later.
The department and the state-owned enterprises and companies for which it is responsible have a mandate, collectively, to ensure that security of energy is not only about the provision of electricity, liquid fuels and gas, but also about sustainable utilisation, affordability, and accessibility for our people, business, and industry. It is with this very clear understanding and appreciation of its urgency that the energy plans developed for the short, medium and long term need to be supported by effective policies; strong institutions and human resources; effective governance; and a regulatory framework that addresses the critical needs for skilling and skills transfer, youth unemployment, and localisation of energy inputs so as to grow our local industry.
We have been elected on a mandate that prioritised energy security, and our responsibility as the executive is to ensure that the policy trajectory is in keeping with the optimum and efficient energy mix. The roll-out of the renewable energy programme has been applauded in a number of quarters, including here. However, there seems to be a reluctance to embrace the totality of this energy mix that our people have called for.
Coal will continue to be a major source of energy both for liquid fuels and electricity. We are a country blessed with abundant coal reserves. It is imperative that we provide leadership in the cleaning of our coal for energy production. This is a resource we can ill afford not to exploit.
As part of that energy mix, we remain resolute in our belief that the potential for shale gas in the Karoo basin needs to be exploited. This has the potential to create a new industry and associated skills. The need to ensure that it is exploited with great care to the environment cannot be overemphasised. The use of imported gas will continue, and efforts to explore for more gas offshore will be accelerated. We are aware of the major international company whose drilling rig is about to move into place in the Southern Cape, beginning what we believe is an exciting phase for our country.
The infrastructure for liquid fuels has served the country for a number of decades. In addition to the 20-year liquid fuels plan, the department will conduct a vulnerability assessment of existing fuel imports, manufacturing and distribution infrastructure. This will be done to test resilience and the ability to respond to various events. The liquid fuel sector has witnessed some changes in the past decade. However, we believe it offers the greatest opportunity for radical economic transformation. In this regard, the department will continue to work closely with the Department of Trade and Industry to identify an approach that will accelerate transformation in this sector. This will further be supported by the Ministry of Small Business Development.
State-owned entities are a critical component in the implementation of our energy policies. It is with this in mind that we began a process of ensuring that we work very closely with them in order to provide policy guidance and support, where required. Strong, focused and well-governed entities are required to meet the challenges of energy security in South Africa.
The department is currently engaged in discussions with and providing support to the Central Energy Fund, CEF, group that will finalise their ongoing restructuring process this year. In his state of the nation address the President identified CEF as one of those institutions that will be required to restructure to align with the need to respond to the challenges and opportunities in the energy sector today.
We are acutely aware of the urgency to expedite the finalisation of the Integrated Energy Plan, IEP, and the updated Integrated Resource Plan, IRP. The policy development processes are urgent and necessary for the industry. However, we do ask that you bear with us as we strive to ensure that these policies serve the purpose of providing policy certainty; ensuring energy security; supporting the development of local industries; creating jobs; and transferring skills.
Allow me to reiterate the democratic government's commitment to give concerted attention to energy efficiency. This is the role for each and every one of us. We all need to know how much energy we consume in our households, in our small enterprises, and indeed in each of the major industries as industrial users. Once we know this, we are in a better position to identify where we can make the necessary reductions.
The energy consumption I'm referring to includes electricity, liquid fuels, and natural and petroleum gases. Inefficient appliances need to be discarded or replaced. When purchasing vehicles, fuel efficiency must be a key consideration. The department and the national energy efficiency agency within Sanedi, working with, amongst others, the National Business Initiative, will ensure that energy efficiency programmes touch every facet of our lives. These programmes will include the implementation of the smart grids and energy efficiency tax incentive schemes.
As already alluded to by the Minister, nuclear energy plays an important role in the energy security of our country. Going forward, the nuclear energy company of South Africa will play a pivotal role in the localisation of our nuclear build programme, which is in line with our energy policy and the IRP 2010 in particular. I would like to pause here so as to emphasise the point that we somehow seem to forget or overlook. We have been producing nuclear energy for decades. In fact, our host city, Cape Town, is basically powered by nuclear energy. We have the requisite expertise and know-how to ensure continued safe nuclear power generation.
Regarding the new nuclear build programme, the department is fully cognisant of the fact that providing regulatory oversight over the new nuclear build programme will require a strengthened and better capacitated regulatory body. Together with the National Nuclear Regulator, NNR, the department will ensure that capacity enhancement for both human capital and facilities continue to be the strategic thrust of the regulator over the Medium-Term Expenditure Framework, MTEF, period. Over and above this, the NNR is in discussion with various stakeholders to establish a nuclear and radiation safety centre of expertise to create a pipeline of skills. This centre, which will be housed in one of the local universities, will involve collaboration of the NNR with its international partners as well as local stakeholders. In addition to this, the National Radioactive Waste Disposal Institute, NRWDI, was established in the 2013-14 financial year with a mandate to fulfil the institutional obligation of managing the disposal of radioactive waste on a national scale. The board of the NRWDI is currently working with the department to ensure that it is operational.
The National Energy Regulator of South Africa, Nersa, will be focusing, over the medium term, on improving oversight of the regulated industries by conducting compliance audits and inspection, and ensuring licenses and certain tariffs. Nersa will do the above in order to encourage investment in the sector, new entrants, and improved competition.
If we are to achieve the energy vision as contained in the National Development Plan, NDP, skills development in the energy sector is of critical importance. Given the planned energy infrastructure investments, the country will require substantial investment in technical skills such as engineers, technicians, artisans, and project and programme managers. This is absolutely essential. The department will be engaging with relevant stakeholders in both the public and private sectors to address the above challenges.
In the meantime, we have formed partnerships with the energy and waste sector education and training authority, Seta, as well as the chemical industries Seta to increase the scope of energy training in order to meet the need for skills in the energy sector. The critical skills identified are catered for in the approved sector skills plans of the aforementioned Setas.
We plan to leverage the benefits of the massive investment in the energy sector by ensuring that our departmental programmes display a greater degree of responsiveness to the needs of our people, such as the empowerment of women and youth, whether it is through the integrated national electrification programme, the roll-out of solar water heating programmes, the Independent Power Producers programme, or the transformation of the liquid fuel sector. We will continue to strengthen interventions and programmes aimed at capacity-building amongst vulnerable sectors in order to enable their meaningful participation in the energy sector in support of the country's transformation agenda. This is an agenda that guides us on a daily basis.
As part of the Decade for Women, as declared by the African Union, AU, we will expand our involvement in the Southern African Development Community, SADC, region through various programmes which include the planned workshop on clean energy education - an empowerment workshop to be held next month. The objective of the workshop is to include participation and awareness of opportunities in the clean energy sector on our continent. We would urge you to follow these developments because I am convinced that all of you here are very committed to supporting the objectives of the women's month of August.
A month ago, we lost one of our female staff members at the hands of somebody whom she trusted and who was supposed to protect her. The department is following up on the criminal proceedings and giving support to the family that has lost this beloved member. We intend to embark on an awareness campaign for our staff to sensitise them about gender-based violence and abuse. None of us can afford to turn a blind eye when the scourge of gender-based violence continues to afflict our society, communities and homes.
The socialisation of our young boys and girls is key if we are to break this cycle of violence and build responsible citizens who know their rights and also understand and appreciate that for every right, there are responsibilities. This is an issue that all of us obviously hold dear, and both the Minister and I are very committed to ensure that we create a conducive environment in the department, which will hopefully impact on broader communities and the people that we interact with. Abuse, in whatever form, can never be acceptable. In this particular case, we lost a life, and we continue to lose lives in this country. So, as we are working towards building a better South Africa, our efforts in this regard cannot be divorced from such issues.
The energy programmes require a capable department that is able to respond with the necessary agility. To this end, we will review the structures of the department to ensure that the requisite skills and abilities are there to meet the urgent demands imposed by the need for energy security. This will extend to the state-owned entities as they are an important component in the implementation of our policies and plan.
I would like to conclude by saying that while I've been in this Energy portfolio for a very short time and this is the first time I have had the opportunity to address the House, I do believe that as a country we have the commitment and the ability to respond to His Excellency President Jacob Zuma's call for the radical transformation of the energy sector. The Department of Energy and its entities are ready to meet the challenge, and working together we can achieve more. I thank you all on behalf of Team Energy. [Applause.]