Coal will continue to play an integral role in the South African energy mix but the dominance it currently enjoys is set to change going forward. This is according to Anthony Julies, deputy director general at the National Treasury, who told delegates attending a recent conference on energy in Cape Town that in 2012 government had already highlighted the importance of a more varied energy mix for the country. “The White Paper for 2012-2025 identified several energy sources. We anticipated that we would have gone to the level of 30% renewable and private participation – and as far as we are concerned as the Treasury, all of these energy sources should be prioritised because it is that energy mix of the future that is inevitable,” he said. Julies was taking part in a panel discussion on Vision 2030, the integrated resource plan for the country that envisages the energy mix by 2030 to consist of half coal power followed by wind and gas as the next most important contributors. While nuclear has for years dominated the energy conversation in South Africa thanks to former President Jacob Zuma’s attempts to sign a R1-trillion deal, gas has emerged as the frontrunner. According to Julies, South Africa will actively move away from nuclear – and coal – going forward. He said it was now about having a mix rather than one dominant commodity. “That is the way of the future because coal does not and will not in future have the dominance as an energy source it has always had. Yes, it has played a particular role and Eskom has played a particular role in that context, and so Eskom in the future will not be the Eskom of the past,” he said. Julies pointed out that as the role of coal diminished in light of its ongoing struggle to be competitive, an increasing role for gas was being developed. Renewables were also back on the table for South Africa. “Treasury has guaranteed R200 billion for renewable energy. That is what is on our books right now,” said Julies. “We should really have had a higher uptake on it already, but the policy uncertainty in the country has been a problem. We cannot have conflicting messages and uncertainty.” Part of this uncertainty has also been attributed to the lack of proper planning which has been exacerbated by the fact that energy falls within the remit of two government departments. Whilst the department of energy is responsible for South Africa’s energy planning, Eskom falls under the Department of Public Enterprises. “Public enterprises and energy need to come to the party and be absolutely clear about the future,” said Julies. He said planning properly and creating a secure and certain environment for investors was critical. “When Treasury go and raise investment there has to be complete certainty, with no deviations from the plan at all.”
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Treasury has guaranteed R200 billion for renewable energy. – Anthony Julies
