(Ed) 2006. Energy policies for sustainable development in South Africa

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10 ENERGY POLICIES FOR SUSTAINABLE DEVELOPMENT IN SOUTH AFRICA Electricity Amendment Act 58 of 1989 Amends the Electricity Act of 1987 to provide for a levy on electricity; ensures that a licence shall not be required for the generation of electricity; and provides for the transfer of servitudes on the transfer of undertakings; and other incidental matters. Nuclear Energy Act 3 of 1993 Brings all nuclear activities funded by the state under the control of the Atomic Energy Corporation, with specified exceptions. Electricity Amendment Act 46 of 1994 Amends the Electricity Act, 1987 by providing for the continued existence of the Electricity Control Board as the National Electricity Regulator (NER), and applying certain provisions of the Act to other institutions and bodies. Electricity Amendment Act 60 of 1995 Amends the Electricity Act of 1987 further to establish the NER as a juristic body; it makes provision for the appointment, conditions of employment and functions of the chief executive officer and employees; and for the funding and accountability of the NER. The objectives of the NER are given as: • Eliminating monopolies in the generation and sales/supply sectors • Rationalising end-use prices and tariffs • Giving customers the right to choose their electricity supplier • Creating an electricity market • Introducing competition into the industry, especially in the generation sector • Addressing the impact of generation, transmission and distribution on the environment • Permitting open, non-discriminatory access to the transmission system • Creating similar opportunities for all distributors of electricity The 1999 National Nuclear Regulation Act This Act amends the governance of nuclear energy. 2.2.4 After 2000 After 2000, there was renewed discussion about reform in the energy sector. There were suggestions that some regulation should return to the deregulated market, starting with the gas and electricity sectors. The concern to extend social benefits of electrification was reflected in the ‘poverty tariff’, which provided 50 kWh of free electricity to poorer households. New policy, for example on renewable energy, continued to emerge. Many of these considerations were combined in the first Integrated Energy Plan in 2003. The 2001 Gas Act Made for the orderly development of the piped gas industry and established a National Gas Regulator. The 2001 Eskom Conversion Act This Act made Eskom into a public company. The 2002 Gas Regulator Levies Act This Act provided for the imposition of levies by the National Gas Regulator.
ENERGY POLICY 11 The 2003 Petroleum Pipelines Bill The Bill seeks the establishment of a national regulatory framework for petroleum pipelines, and provides for the licensing of persons involved in the manufacturing or sale of petroleum products. Merging of the energy regulators In April 2003, the Minister of Minerals and Energy announced that the NER, the Gas Regulator and the Upstream Petroleum Regulator would merge into a single entity within five years. 2.2.4.1 Integrated Energy Plan At the end of 2003, the Department of Minerals and Energy (DME) published an Integrated Energy Plan (IEP). This plan provided a framework for taking decisions on energy policy and for the development of different energy sources and energy technologies in the country. The Energy Research Institute was contracted to undertake a computerised analysis of the plan based on energy reserves, energy demand, and consumption up to 2020, using different scenarios of the South African economy. These scenarios show future energy use from different energy sources, and evaluate the associated pollution, including emissions of greenhouse gases. 2.2.4.2 Oil and gas industry South Africa depends heavily on imported crude oil, which is then refined locally. Historically, several different government institutions have been involved in various areas of the petroleum industry such as importation of crude oil, exploration activities, and strategic fund development. Liquid fuels production, importation and consumption account for approximately 20% of South African total primary energy supply (TPES). Currently consumption is about 450 000 barrels/day. Net imports account for about 255 000 b/d, with the balance being synthetic fuels from coal produced by Sasol, and natural gas from Mossgas. The petroleum sector is governed by a complex system of agreements between government and the oil industries. These agreements essentially regulate the price of petrol and diesel and determine how it is to be distributed, produced, transported and sold, although the operations themselves are undertaken by the respective companies. With the exception of pricing, the petroleum sector is not yet deregulated. In 2003, DME introduced a new price mechanism, changing from the ‘in-bond landed cost’ (IBLC) to a basic fuel price set by the DME that will give back to motorists and the economy an amount of R1 billion over 12 months. The DME, in collaboration with the Department of Transport (DT), has recommended the use of diesel fuel in minibus taxis as a means to reduce air pollution. To be effective as a policy, this will require more diesel vehicles and good collaboration between the oil industries and car manufacturers. In 1991 the government deregulated refinery industries in South Africa. The income of refineries is determined by import parity cost of fuels, and there is no control over refinery margins. In summary: • The government will not extend regulatory control over crude oil refining. • There is no need for South Africa to build another refinery, since the current total refinery capacity is sufficient to meet the present demand.
Page 1: Energy policies for sustainable dev
Page 4 and 5: Contents Acknowledgements Executive
Page 6 and 7: 6 Energy and economic development 7
Page 8 and 9: 9.2.5 Discounting costs 152 9.2.6 E
Page 10 and 11: Executive summary The purpose of th
Page 12 and 13: ENERGY POLICIES FOR SUSTAINABLE DEV
Page 14 and 15: ENERGY POLICIES FOR SUSTAINABLE DEV
Page 16 and 17: Abbreviations and acronyms used ADM
Page 19 and 20: Part I ENERGY FOR SUSTAINABLE DEVEL
Page 21 and 22: ENERGY FOR SUSTAINABLE DEVELOPMENT:
Page 23 and 24: ENERGY POLICY 5 Gas consumption pla
Page 25 and 26: ENERGY POLICY 7 2.2.3.1 Accelerated
Page 27: ENERGY POLICY 9 are privately owned
Page 31 and 32: ENERGY POLICY 13 • To ensure that
Page 33 and 34: ENERGY POLICY 15 great a reliance o
Page 35 and 36: ENERGY POLICY 17 under way. Concern
Page 37 and 38: ENERGY POLICY 19 global environment
Page 39 and 40: ENERGY POLICY 21 2.4.4 Cleaner foss
Page 41 and 42: 3 Energy demand Harald Winkler 3.1
Page 63 and 64: 4 Energy supply in South Africa And
Page 65 and 66: ENERGY SUPPLY IN SOUTH AFRICA 47 Ta
Page 67 and 68: ENERGY SUPPLY IN SOUTH AFRICA 49 pr
Page 69 and 70: ENERGY SUPPLY IN SOUTH AFRICA 51 Fi
Page 71 and 72: ENERGY SUPPLY IN SOUTH AFRICA 53 Fi
Page 73 and 74: ENERGY SUPPLY IN SOUTH AFRICA 55 an
Page 75 and 76: ENERGY SUPPLY IN SOUTH AFRICA 57 in
Page 77 and 78: ENERGY SUPPLY IN SOUTH AFRICA 59 co
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5 Social issues Gisela Prasad Contr
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SOCIAL ISSUES 63 Type of area Popul
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SOCIAL ISSUES 65 that the number of
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SOCIAL ISSUES 67 Income group Elect
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SOCIAL ISSUES 69 5.2.2 Subsidies Si
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SOCIAL ISSUES 71 Energia News Octob
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SOCIAL ISSUES 73 Community organisa
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SOCIAL ISSUES 75 Sasol and a high l
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6 Energy and economic development J
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ENERGY AND ECONOMIC DEVELOPMENT 79
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ENERGY AND THE ENVIRONMENT 89 The A
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ENERGY AND THE ENVIRONMENT 91 trail
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ENERGY AND THE ENVIRONMENT 93 preci
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ENERGY AND THE ENVIRONMENT 95 the u
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ENERGY AND THE ENVIRONMENT 97 known
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ENERGY AND THE ENVIRONMENT 99 7.3.1
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ENERGY AND THE ENVIRONMENT 101 GHG
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ENERGY AND THE ENVIRONMENT 103 ther
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IDENTIFYING AND MODELLING POLICY OP
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9 Modelling framework and drivers M
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MODELLING FRAMEWORK AND DRIVERS 149
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MODELLING FRAMEWORK AND DRIVERS 151
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10 Results of scenario modelling Th
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RESULTS OF SCENARIO MODELLING 155 T
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RESULTS OF SCENARIO MODELLING 157 F
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RESULTS OF SCENARIO MODELLING 159 d
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RESULTS OF SCENARIO MODELLING 161 i
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RESULTS OF SCENARIO MODELLING 167 T
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RESULTS OF SCENARIO MODELLING 169 c
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RESULTS OF SCENARIO MODELLING 171 A
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11 Energy indicators of sustainable
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ENERGY INDICATORS OF SUSTAINABLE DE
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12 Conclusions Harald Winkler T his
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CONCLUSIONS 189 costs (Spalding-Fec
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Appendix Environment CO 2 emissions
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ENERGY FOR SUSTAINABLE DEVELOPMENT:
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ENERGY FOR SUSTAINABLE DEVELOPMENT:
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SOUTH AFRICAN ENERGY POLICIES FOR S
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