DMRE reaffirms commitment to energy mix

Thursday, March 10, 2022

Mineral Resources and Energy Deputy Minister, Dr Nobuhle Nkabane, says South Africa will not “plunge” itself into energy supply uncertainty while working to reduce its carbon emissions.

She was speaking during the Northern Cape Mining Investment Conference held in Kimberley on Thursday.

Although the country has committed to reducing its carbon emissions, South Africa will continue to pursue an energy mix including nuclear, renewable and coal fired energy.

“[We] continue to explore technologies that can mitigate against carbon emissions, amongst which is Carbon Capture Utilization and Storage or CCUS. However, we insist that our country deserves energy security as provided from a baseload perspective by the current coal power stations and the Koeberg Nuclear Energy plant.

“It is our considered view, as it is with all countries, that we cannot plunge ourselves into technology uncertainty and energy insecurity,” she said.

The Deputy Minister highlighted that South Africa still relies heavily on coal and transitioning towards greener technologies will take time.

“There is an umbilical cord between South Africa’s coal mining and energy. Currently, our reliance on coal as a primary source of energy is at 75%. We have committed to progressively contribute our fair share as part of our approved Nationally Determined Contributions, and we aim to reduce coal consumption in the power generation sector to below 60% by the year 2030,” Nkabane said.

She highlighted that numerous renewable energy projects are set to boost energy supply in the country.

“The IRP [Integrated Resource Plan] 2019 allocates 14 400MW to wind, 6 000MW to Solar PV, 2 088MW to battery storage, and 2 500MW to Hydro.

“The Independent Power Producer Office continues to lead South Africa’s procurement Programme and we are poised to gain 6 800MW of renewable energy in the short to medium term. [Some] 2583MW have been procured through Bid Window 5 which is expected to reach financial close soon,” she said.

The Deputy Minister encouraged the mining sector to take advantage of the amended Electricity Regulation Act (ERA) and generate some of its own electricity.

“In 2021, we amended Schedule Two of the ERA to enable embedded energy generation up to 100 megawatts without the need for a license. As an intensive electricity use industry, the mining sector stands to benefit from own generation in terms of cost and the ability to secure own supply,” she said. – SAnews.gov.za