Lack of stakeholder consultation dominates Energy Indaba

Nevertheless, in any highly charged environment, the energy sector remains a topical matter in the hearts and minds of many South Africans. However, what is more important is a constructive debate that seeks to provide an overall perspective on some of the items debated at the Indaba.

Riccardo Temmers, CDC acting executive manager,

Centre of Excellence

Take away points

Economic growth

The economy is the backbone of the country, and little can be achieved without proper impetus. Specialist energy sectors namely, renewables, gas, coal, nuclear and liquid fuels have the potential of attracting investments, developing skills, R&D, technology transfer and innovation, by creating an energy value chain with a long-term view in mind. This will allow for new entries in the sector to develop and mature over time, and to uplift previously disadvantaged communities.

There are significant benefits to be gained by investing in energy programmes across South Africa. Developing key capabilities over the medium term will allow South Africans to export its intellectual capital to its neighbors and assist in the development of the region.

Enabling infrastructure

Enabling infrastructure for power stations, refineries, wind and solar farms is central to development. Some of the highlighted issues include, a symbiotic relationship between infrastructure such as roads, water and sewer services, port facilities, skills training centres and health facilities to name but a few. These play a critical role in ensuring that an environment which is fit for purpose is established.

Towards an integrated energy mix

The planned closure of several Eskom power station between now and 2030, means new power stations need to be brought online. Procurement planning needs to factor in grid stability to reduce extensive losses on the electricity transmission network. Too much emphasis is placed on price related to new power stations rather than on the benefits and value of local manufacturing, job creation and participation of black entrepreneurs and communities.

In the same breath, another important point was that the development of a crude oil refinery will lead to significant economic benefits especially when one considers the country’s dependency on liquid fuels for the transportation of goods and people.

New refining capacity and security of supply is a critical factor that ought to keep the country sober during turbulent times. The indaba highlighted that Africa has amongst the lowest number of refineries of any continent, with 15 of the refineries located in two countries, mainly six in SA and nine in Egypt. These refineries are ageing, needing high level of maintenance and or construction of new refineries.

In conclusion, investment in the energy sector in South Africa would lead to economic growth, development and job creation. It is important to note that the economy and energy security is mutually dependent.