Click to edit Master subtitle style 2/16/12 PORTFOLIO COMMITTEE ON ENERGY BRIEFING ON INTERNATIONAL...

Click to edit Master subtitle style

2/16/12

PORTFOLIO COMMITTEE ON ENERGY BRIEFING ON INTERNATIONAL ACTIVITIES OF THE DEPARTMENT OF ENERGY


2/16/12

IntroductionFactors that drive and guide energy sector international relations The Department’s approach to international relations – tenets

Department’s International Relations Strategy Security and continuity of the country’s

energy supply (oil, gas and electricity) Diversity of the energy mix Climate change imperatives Role in Africa and Southern African

Development Cooperation (SADC) in particular Bilateral and multilateral relations pursued by Department of Energy (DOE)

Participation in global energy bodies SADC Power Pooling – Southern African Power

Pool (SAPP) Conclusion

2/16/12 33

FACTORS THAT GUIDES AND DRIVE THE ENERGY SECTOR INTERNATIONAL RELATIONS

Access to information

Upward pressure on cost

of energy

Climate change (Clean energy)

Access to technology

Skills and capacity

Energy security

Access to energy resources

Diversity of supply

Safety

Access to funding

Energy sector

International

cooperation

2/16/12

Securing energy supplyCurrent situation oil and gas sector• 60% - 70% of our oil supply comes from the Middle

East and most of the gas from the Republic of Mozambique

• DOE engagements focused on ensuring diversity and security of supply, access to producing and near producing asserts first on the African continent and elsewhere and ensuring affordability and accessibility of energy products

44

2/16/12

Securing Energy SupplyAccess to assets to diversify sources of supply for oil:-• Engagements with the following countries are in

progress to secure new supply relations• Venezuela, - PetroSA secured blocks and is working on

marginal blocks 2009 implementation in progress• Egypt- signed an MOU on Oil and gas and developed an

implementation plan in 2010• Ghana- drafted an MOU on Oil and Gas and now signed in

September, 2011 and working on an implementation plan• Algeria –signed an MOU in 2010 on Oil and Gas- and

PetroSA working on an implementation plan

55

2/16/12

Securing Energy Supply

• RSA and Mozambique Gas Commission – promoting gas development and trading between the countries

• RSA and Namibia Gas Commission to promote development of gas assets

• Republic of Angola -PetroSA and Sonangol exploring areas of Cooperation in the oil and gas and currently exploration potential projects of commercial interest

• Increase trading in petroleum products with the African continent mainly- Angola and Nigeria (crude trading) and Mozambique – gas.

• .66

2/16/12

Securing Energy Supply• MOU between PetroSA and SINOPEC (30/09/2011)• The MOU allows the two companies to explore the

possibility of working together to development the Mthombo project, conduct exploration and production , engage in wholesale trading and distribution of petroleum products in South Africa and crude trading in general.

• MOU between PetroSA and PDVSA- Venezuela- access to near producing and near producing assets

77


2/16/12

Clean Energy and Climate Change•President Zuma through the Copenhagen accord has committed GHG reductions by 34 by 2020 and 42% by 2025 under business as usual and subject to available resources.•South Africa is one of the major emitters and the energy sector contributes 80% of emissions • In line with mandate the DOE has reviewed policy and international engagements to enable alignment with the climate change mandates


2/16/12

Clean Energy and Climate Change•International Activities to - Promote engagements to enable the DOE to meet clean energy initiatives through multilateral engagements:•approved participation in the International Partnership for Energy Efficiency Cooperation to assist in Capacity building in the energy in EE, sharing information, policy development etc•Carbon Sequestration leader ship Forum-Attended to CCS– special focus on clean coal technologies• Deploy clean coal technologies – CCUS – Australia, UK, Norway• Establishment of the CCS and the Carbon Capture and Storage Atlas with the assistance of international funding from bilateral and multilateral organizations


2/16/12

Clean Energy Ministerial

•Spearheaded by the USA – Major Economies Forum (24 countries participate)•RSA is the Ambassador for Clean Energy in Africa • Global forum promoting policies and programs that advance clean energy technologies•A total of 11 initiatives supported by the CEM, and RSA is a member of the following:

• Multilateral Solar and Wind Working Group

•Global Superior Energy Performance Partnership (GSEP) GSEP aims to reduce global energy use in industrial facilities focus on cement, steel and energy management


2/16/12

Clean Energy Ministerial

•Energy Efficiency Initiative•Electric Vehicle Initiative•Carbon Capture use and Storage Action Group•Solar and LED Energy Access Programme•Clean Energy Education and Empowerment Women Initiative (C3E)•Smart Grid initiatives•Super Efficient Appliance and Deployment Initiative -SEAD

2/16/12

Securing Clean Energy Supply

• Bilateral initiatives:- MOU between the RSA and the Kingdom of Lesotho in Energy Resources in the field of Energy Resources – 27/10/2011

• Renewable energy potential in the Kingdom of Lesotho (wind and hydro is substantial and the country is keen to work with RSA

1212

2/16/12

Clean Energy • MOU between the Government of the Republic

of South Africa and the Government of the Democratic Republic of the Congo (Grand Inga) 12/11/2011

• The MOU paves the way for developing a Treaty between the two countries which will enable South Africa and the DRC together with other countries to exploit the potential of the Grand Inga to generate approximately 40000MW of hydro electricity.

1313

2/16/12

Clean Energy• MOU between the Government of the RSA

and the Government of the Kingdom of Denmark in the fields of renewable energy and energy efficiency.

• Denmark is a global leader in wind energy and through this agreement it is assisting RSA to develop a wind awareness campaign, development of wind atlas, skills and technology transfer.

1414


2/16/12

Bilateral Relations of Note• Department singed and MOU with Peoples republic of China - Energy Sector signed MOUs which enabled the energy sector to access funding as well as PetroSA to forge relations with Chinese companies •Signed an MOU which paves the way for PetroSA to work with experienced Chinese oil and gas companies in the upstream sector and also their participation in the PetroSA infrastructure projects in the country•An Energy forum has been initiated with China where officials and business meet once a year to review implementation of the MOU and ensure that there is company to company cooperation and investment in the sector.


2/16/12

Bilateral Relations of Note•A number of companies have signed business agreements with Chinese companies to invest in the energy sector in RSA and projects are being monitored to ensure that there is:-

- mutual benefit, alignment to the job creation initiative, the compliance to IPAP 2

-localisation imperatives and - technology transfer as well as - skills development in all investment projects.

2/16/12

African Energy Ministers Conference (AEMC)• In preparation for COP 17, the DOE held several

events including (AEMC) attended by more than 45 countries.

• The Ministers from the continent outlined projects of priority and made a conscious decision to support climate change initiatives through deployment of sustainable energy programs

• Highlighted the need for funding, technology & skills transfer.

1717

2/16/12

Nuclear • The Department has relations with multilateral bodies that

promote the safe use of nuclear and adhere to the principals of non-proliferation.

• The Department has taken active interest and followed up on the Fukushima Nuclear disaster with the aim of learning from the accident

• Bilateral engagements have been conducted and agreements concluded with Algeria, Korea and China and currently exploring cooperation with other countries such as Uganda.

• The Department has benefited from exchange of information, capacity building from bilateral and multilateral relations

1818

2/16/12

Access to funding• Declaration of Intent (DOI) on the South African

Renewables Initiative • This DOI enables the South African Government

to access soft loan from signatory countries and institutions to support deployment of RE

• The MOU will also facilitate job creation technology transfer and localisation

• Denmark, UK, Germany, Norway and the European Investment Bank have signed and will be committing funds to the initiative

1919

2/16/12

Access to funding• Agreement between the Government of the RSA

and the Government of the People’s Republic of China (China Development Bank Corporation) on cooperation in the energy sector

• China Development Bank Corporation set aside US $20 billion for investment in the energy sector in RSA.

2020

2/16/12

CAPACITY BUILDING• All the agreements that the DOE signs have a

component of information sharing and capacity building• Change in technology and quest for new energy

technologies necessitates training and ensuring the country state of readiness to deploy new technologies (renewable energy, Carbon Capture & Storage)

• MOU with the International Energy Agency (2011) to promote capacity building and support in energy planning and research- implementation plan has been signed off and training under this agreement initiated.

• International Atomic Energy Agency – provides extensive training for the sector

2121

2/16/12

SADC Regional initiatives• Energy Ministers Annual Meeting• Approved development of a renewable energy strategy for SADC,

infrastructure development master plan • Alignment of regulatory policies to ensure trade and investment

regionally e.g. Regional Electricity Regulatory Authority• Conducted capacity building workshops on energy for example

clean development mechanism led by RSA, on biofuels and food security, and data collection

• South Africa supporting the establishment of designated national authorities in the region

• Promotion of regional electricity interconnectivity and support to the Southern African Power Pool (SAPP) and related projects

2222

2/16/12

DEMAND AND SUPPLY SITUATION

2323

2/16/12

SADC POWERPOOLING

2424

Planned Capacity vs Forecast , MWAll SAPP Members

0

10000

20000

30000

40000

50000

60000

70000

80000

2010 2011 2012 2013 2014 2015 2016

MW

Forecast Capacity Planned

Energy Planned vs Forecast , GWhAll SAPP Members

050000

100000150000200000250000300000350000400000450000

2010 2011 2012 2013 2014 2015 2016

GW

h

Energy Forecast Energy Planned (GWh)

2014Critical

For Capacity

Adequate Reserve Margins

2016Critical

For Energy

2/16/12

SADC POWERPOOLING• Power trading is possible in the SADC region

but there is need to create an enabling environment.

• With SADC, governments, utilities, developers have identified that problems exist in the enabling environment (e.g. financing, security of supply, regulation, pricing) for long-term cross-border power trading

• Map shows a number of potentially viable cross-border projects

2525

2/16/12

SAPP Transmission Projects

2012 DRC - Zambia

• 2013: ZIZABONA - 220/33kV • 2013: Mozambique Malawi • 2014: Zambia - Tanzania - 400 kV

• 2016: MOZAMBIQUE BACKBONE -RSA

• 2015: RSA Strengthening

2017: Namibia – Angola

• 2626

DRC

Tanzania

Malawi

Zimbabwe

Mozambique

Lesotho

Swaziland

South Africa

Botswana

Namibia

Angola Zambi

a

2/16/12

Overview of Regulatory Decisions for Cross Border Deals

• Licence transmission company

• Licence importer

• Approve power purchase agreement between seller and buyer

• Review value for money (if buyer supplies captive customers and transaction is not competitively tendered)

• Approve wheeling charges through Country B

• Approve pass-through of purchasing costs (power and transmission) into regulated tariffs


• Licence importer and exporter

• Approve wheeling agreements

• Review financial impacts (if transmission company supplies captive customers)

• Licence generator


• Licence exporter

• Approve sale and wheeling agreements

• Review financial impacts (if seller supplies captive customers)

Country A Exporting

Country B Transit

Country C Importing

Power Purchase Agreement

Generation

Transmission

Load

Wheeling Agreements

2727

2/16/12

SADC APPROVED ENERGY INFRASTRUCTURE PROJECTS

• Transmission Backbone in Mozambique• HCB North Bank in Mozambique• Mpanda Nkuwa Hydro Power Project in

Mozambique• Batoka Hydro project in Zambia and Zimbabwe• Kafue Gorge Lower in Zambia• Kariba South Extension in Zimbabwe• Kudu Gas Power Project in Namibia

2828

2/16/12

SADC APPROVED ENERGY INFRASTRUCTURE PROJECTS

• Zambia – Tanzania – Kenya Interconnector• Mozambique – Malawi Interconnector• Namibia – Angola Interconnector• DRC – Angola Interconnector• ZIZABONA Interconnector• Central Transmission Corridor (CTC) in Zimbabwe• Kafue – Livingstone Transmission Upgrades

2929

2/16/12

SADC REGIONAL PROJECTS

3030

Dem Rep of CongoCongoGabon

Luanda

Windhoek

Lusaka

Harare

Lilongwe

Nairobi

Dar es Salaam

GaboronePretoria

Johannesburg

Cape Town

MaputoMbabane

KinshasaBrazzaville

Angola

Tanzania

Kenya

Mozambique

South Africa

Swaziland

Lesotho

Namibia

Zambia

Botswana

Zimbabwe

Malawi

RwandaBurundi

1

2

34

5

7

6Illustrative Regional Projects

1.Kudu Gas Project (US$600m)2.Mmamabula (US$3,000m)3.Kafue Lower (US$1,500m)4.Mpanda Nkuwa (US$2,000-2500m)5.Moatize Coal (US$1,3000m)6.Eastern Corridor (US$2,500m)7.WestCor (US$8,500)8.Zizabona (US$385m)9.Malawi Interconnector (US$93m)

8

9

7


Luanda

Windhoek

Lusaka

Harare

Lilongwe

Nairobi

Dar es Salaam

GaboronePretoria

Johannesburg

Cape Town

MaputoMbabane

KinshasaBrazzaville

Angola

Tanzania

Kenya

Mozambique

South Africa

Swaziland

Lesotho

Namibia

Zambia

Botswana

Zimbabwe

Malawi

RwandaBurundi

1

2

34

5

7

6


Luanda

Windhoek

Lusaka

Harare

Lilongwe

Nairobi

Dar es Salaam

GaboronePretoria

Johannesburg

Cape Town

MaputoMbabane

KinshasaBrazzaville

Angola

Tanzania

Kenya

Mozambique

South Africa

Swaziland

Lesotho

Namibia

Zambia

Botswana

Zimbabwe

Malawi

RwandaBurundi


Luanda

Windhoek

Lusaka

Harare

Lilongwe

Nairobi

Dar es Salaam

GaboronePretoria

Johannesburg

Cape Town

MaputoMbabane

KinshasaBrazzaville

Angola

Tanzania

Kenya

Mozambique

South Africa

Swaziland

Lesotho

Namibia

Zambia

Botswana

Zimbabwe

Malawi

RwandaBurundi

1

2

34

5

7

6Illustrative Regional Projects

1.Kudu Gas Project (US$600m)2.Mmamabula (US$3,000m)3.Kafue Lower (US$1,500m)4.Mpanda Nkuwa (US$2,000-2500m)5.Moatize Coal (US$1,3000m)6.Eastern Corridor (US$2,500m)7.WestCor (US$8,500)8.Zizabona (US$385m)9.Malawi Interconnector (US$93m)

8

9

7

2/16/12

Conclusion• The DOE has initiated both multilateral and

bilateral relations that focus on ensuring that the country has access to

• Secure, affordable and accessible energy • Access to funding, technology & technology

transfer• Skills to be able to deploy technology intensive

projects, promote localisation and job creation &• Embraces the African continent and SADC region

South – South Cooperation and North - South in line with DIRCO policy

3131

2/16/12 3232

Thank you

Click to edit Master subtitle style 2/16/12 PORTFOLIO COMMITTEE ON ENERGY BRIEFING ON INTERNATIONAL...

Documents

Transcript of Click to edit Master subtitle style 2/16/12 PORTFOLIO COMMITTEE ON ENERGY BRIEFING ON INTERNATIONAL...