transformed Energy Sector. mix for universal access within a transformed Energy Sector. Environmental Assets : Environmental assets & natural resources protected & continually enhanced by cleaner energy technologies. Environmental Assets : To ensure that environmental assets & natural resources are protected & continually enhanced by cleaner energy technologies. Climate Change : Mitigation against, & adaptation to, the impacts of climate change. Climate Change : To implement policies that adapt to & mitigate the effects of climate change. Corporate Governance : Good corporate governance for effective & efficient service delivery. Corporate Governance : To implement good corporate governance for effective & efficient service delivery. Source: DoE Annual Assessment Performance Plan 2013/14 3. Summary of previous key financial and performance recommendations of the portfolio Committee on energy Summary of previous key financial and non-financial performance recommendations made by the Portfolio Committee on Energy (2010/11 – 2011/12): of the Department The campaign around changing consumer behaviour on usage of energy (energy saving lifestyle), Some initiatives by the DoE and entities e.g. 49M project at Eskom Local manufacturing and beneficiation of products (focusing on, inter alia, solar photovoltaic and renewable energy technology) in the green economy. Due consideration should include the consideration of Various initiatives across the country on waste to energy, e.g. landfill gas projects
urban waste as a source of energy. The Renewable Energy Technology Policy and Programme should be developed in line with the conventional grid infrastructure by the Minister of Energy and progress on such be shared with Parliament. No progress noted The Minister of Energy should develop regulations for handling, disposal and recycling of power batteries by the end of the third quarter of 2012. No progress noted Establishment of an African Technology Test Centre, in partnership with NEPAD, should be explored by the Minister of Energy in order to standardize materials used to manufacture photovoltaics and associated products. Progress thereon should be shared with Parliament. No progress noted The Minister of Energy should emphasize education focused on nuclear technology used for nuclear energy, as part of its public education programme on energy issues. This is an effort that should be executed in collaboration with other spheres of Various programmes noted including development programmes at NECSA and NNR. The NNR is involved in several community outreach projects
Technology, Mineral Resources, Water and Environmental Affairs. An update hereon should be presented. The Minister of Energy should examine the adequacy of the Strategic Fuel Fund’s (SFF)’s funding received from the fiscus. Such effort should include a comprehensive review of fuel stocks reserves which are currently 21 days. Progress has been noted in this regard The Department of Energy address the committee on the Internal Audit Control strategies and plans on how to achieve clean audits for both the Department of Energy and its entities. Updates have been given during quarterly reporting. This is on going The Department of Energy and its entities develops a strategy on synergy between itself and its entities within 2012/13 financial year. Such a strategy should include monitoring and evaluation of funds transferred to entities including municipalities. The Department of Energy to update the Portfolio Committee on Energy on this. Forums established at CEO level and an Oversight Directorate established The Department of Energy is to update the Portfolio Progress noted
Committee on Energy on the Renewable Energy Independent Power Producer Programme (REIPPP). The Department of Energy ensures corporate services especially skills development, legal services and monitoring and evaluation have adopted plans by the end of the 2012 calendar year. The Department of Energy to briefly outline the plans. No progress noted The Department of Energy ensures that an independent verification mechanism is in to determine the quality of liquid fuels. The testing of liquid fuels not done The Department of Energy ensures the readiness of South African Nuclear Energy Corporation and the National Nuclear Regulator for the New Nuclear Build Programme is visibly geared up. The Department of Energy to update the Portfolio Committee on Energy on progress here. Ongoing – phased approach The Department of Energy develops a plan on policy and strategy is developed within the 2012/13 financial year. Progress by the Committee
of the The are 6: Energy-related recommendations made by the Commission in the last years Submission Document Recommendation Government Response Progress Submission on the 2012/13 DoR 1. Government should actively and specifically pursue the development of a more spatially compact urban form for South African cities, by developing and adopting appropriate policies and financing instruments Government agrees with the objective of promoting a more spatially compact urban form • The Department has included efficient land utilisation as one of strategic outcome goals • Government has initiated a new cities support programme involving several departments to assist cities manage the built environment in a way that promotes economic growth, job creation, access to basic services and environmental sustainability. 2. Government should conduct a broad based review of the efficacy of current housing finance arrangements in meeting housing needs within the context of creating sustainable and more compact human settlements Government is considering the efficacy of all housing financing instruments within the wider context of improving delivery of infrastructure and services to enhance built environments. This will lead to further reforms of the human settlements development grant and the urban settlements development grant. The FFC also undertook a comprehensive assessment of the entire local government fiscal framework. The various challenges and subsequent solutions proposed were the result of intense stakeholder interactions which saw the Commission hosting two public hearings between
• Implementation of the Integrated Resource Plan (IRP) (nuclear, IPPs, etc.) • Increase the number of grid and non-grid connections through INEP • Water Heaters programme • Energy Efficiency • Finalisation of the CEF group restructuring process • Finalisation of the Integrated Energy Plan (IEP) • Monitoring of Petroleum Compliance • Conclusion of the Regulatory Account Process 5.7. Other service delivery performance findings as identified by the DPME To follow is the 3 Year Comparison on Department of Energy Outcome 6: 4th Quarter Data for Financial Years - 2010/11, 2011/12, and 2012/13 Sub-output 4th Quarter 2010/11 4th Quarter 2011/12 4th Quarter 2012/13 2.1 Create regulatory and institutional structures for the introduction of viable Independent Power Producers (IPPs) and start process for the participation of IPPs in 2010 • A ring-fenced entity for the procurement of electricity from the Independent Producers (IPPs) established, with contracts already signed with four IPPs and 277MW of electricity added to the national grid • The ESEID Cabinet Committee approved the draft ISMO legislation in March 2011, for tabling at Cabinet • The ISMO Bill to be deliberated in parliament in May 2012, with the intended finalization of Q3 2012 • Energy IPP Programme underway. To date, 1415MW of preferred bidders have been appointed, with the intention for them to commission before • The ISMO Bill was adopted by the Parliamentary Portfolio Committee on Energy in March 2013. It has since been reclassified as Section 76 legislation and will now follow the NCOP approval process. Once the Bill has been ratified into law, the process to establish ISMO as a State Owned Company will start. • IPPs generation capacity regulations under the Electricity Regulation Act have been promulgated. IPP process has
progressed on Renewable energy 2.2 Develop a funding and plan and reduce the electricity distribution infrastructure maintenance backlog of R27.4bn to R15bn by 2014 • The ADAM project, outlining the blueprint to rehabilitate distribution infrastructure completed. • The Approach to Distribution Asset Management (ADAM) proposal has been completed. Pilot projects to be initiated by June 2012. • Cabinet approved the Cabinet Memo on Approach to Distribution Asset Management (ADAM). A pilot project is being implemented wherein nine municipalities have been allocated funding for infrastructure refurbishment. 2.3 Household access to electricity should be 92% by 2014 A total of 194 941 households have been connected to electricity in the current financial year electrification programme was able to connect 155 213 house holds by 31 March 2012 • In the last quarter under review, 72 802 households were electrified. Eskom electrified 59 230 and Municipalities electrified 13 572 and was 5264. • Overall 86 percent electrified. 2.4 Develop a funding for electricity generation build programme to ensure security of supply No information on this item By 31 March 2012, Eskom had secured 77.6% of the funding required for the Capital Expansion Programme (Medupi, Kusile, Ingula, RTS, Transmission projects and refurbishments Projects) has continued to focus on export credit agencies, development finance institutions and the domestic money market for its funding requirements. In this regard, Eskom has secured over 80 percent of
the funding requirement for the build programme up to 2017. 2.5 Long-term energy mix diversification to address the security of energy supply and requirements for renewable The Integrated Resource Plan was approved by Cabinet in March 2011 The Integrated Resource Plan developed and adopted after thorough public consultation. The RE requirements outlined to constitute 40% of all future investment till 2030 IRP approved that provides long term generation targets and mix. Approx 2 400MW of renewable energy IPPs selected as preferred bidders. Window two - 28 preferred bidders reached financial close and signed Agreements in November 2012. Window one Projects are currently under construction and should be ready to supply power to the grid at least by 2016. By end-March 350 000 solar water heaters were installed; the rules for the Energy Conservation Scheme were completed after stakeholder engagement; the residential and industrial energy efficiency initiatives have reduced
demand by 1.4TWh. The rules for the Energy Conservation Scheme were completed after stakeholder engagement; the residential and industrial energy efficiency initiatives have reduced demand by 1.4TWh. 2.6 Migrate Eskom coal from road to rail Rehabilitate coal haulage roads (joint responsibility with DPE and DoT) Eskom and the Transnet Freight Rail (TFR) have not yet concluded the necessary agreements to facilitate the migration And Service Level Agreements (SLA) between SANRAL and the Mpumalanga Department of Public Works, Roads and Transport not yet finalised. 8.5 Mt of Eskom coal on rail (35.5 Mt on road) in 2011/12 Eskom has completed Camden and Tutuka containerised coal terminals. The Majuba heavy-haul line project is underway. Eskom planned to transport 12.2 million tons by rail in 2012/13 once the Tutuka rail facility was operating. The actual amount transported was 10.1 million tons. 2.7 Restructuring of the electricity distribution industry Cabinet decision concluded to terminate the REDS process Cabinet decision concluded to terminate the REDS process EDI restructuring process terminated. In the revised Delivery Agreement, the project will be excluded. 2.8 Setting cost reflective tariffs while cushioning the poor from The Inclining Tariffs (IBT), which provides preferential tariffs for the indigent, have been As tariffs increase, three cushioning mechanisms in place – (a) Estimated national of FBE is about 70% to