Energy professionals present conference outcomes to War Room

April 4th, 2015, Published in Articles: Energize


The 2nd Electricity Conference of the Fossil Fuel Foundation (FFF) was held was held on 25 March 2015, and was attended by 60 delegates, mainly from industry and the electricity sector.


The conference was entitled: “Electricity, the Economy, War Rooms – is there hope at last?”

Presenters at the conference included:

  • Dr. Steve Lennon, Eskom
  • Mike Rossouw, energy consultant to Eskom
  • Brian Day, independent energy consultant
  • Sisa Njikelana, SAIPPA
  • Roger Baxter, Chamber of Mines
  • Gordon Mackay, DA deputy shadow minister of energy
  • Andrew Etzinger, Eskom
  • Ian Curry, Basil Read Energy
  • Rob Jeffrey, Econometrix
  • Stan Pillay, Anglo American

On conclusion of the formal presentations, an open discussion involving the panelists below and the attendees at the FFF conference was held.

The panelists facilitating the open discussion at the conference comprised:

  • Sisa Njikelana, chairman, South African Independent Power Producers Association (SAIPPA)
  • Brian Day, independent energy consultant
  • Rob Jeffrey, managing director, Econometrix
  • Chris Yelland, managing director, EE Publishers
  • Ian Curry, managing director, Basil Read Energy

The purpose of the open discussion was to generate specific outcomes for communication to the War Room for consideration in its deliberations on the electricity supply crisis facing South Africa.

A ten-point outcomes document was prepared for presentation to the War Room as follows:

  1. Economic growth, supported by electricity supply, must come first.
  1. Engagement between industry and government on the security of supply and competitiveness of electricity supply needs to be ramped up. Specific engagement with the broader IPP industry is required to fully grasp the potential for alternative generation through greater participation of the private sector.
  1. A national dialogue in the form of an inclusive Electricity Summit should be explored. This could be on the basis of an Operation Phakisa or similar process.
  1. South Africa needs to take an overall system planning perspective, not just a generation perspective, and needs an independent national operator that procures electricity not on the basis of technology, but on parameters such as variability, dispatchability, ramp-up time and lead-out time.
  1. NERSA should be empowered to:
  • Issue generation licenses without the prescriptive impediments of the IRP;
  • Set wheeling tariffs that deal with subsidies to municipalities that entice IPPs with private PPAs;
  • Expedite rules for embedded generation (all technologies).
  1. Part of the 5500 MW potential for cogeneration should be facilitated through tax incentives.
  1. The IPP office should be empowered to:
  • Expedite cogeneration RFP;
  • Execute Renewable Energy Round 4;
  • Publish a roadmap for further procurement.
  1. A new IRP should be formalised and adopted, without allowing it to constrain the issuing of generation licences by NERSA.
  1. The GUMP should be published and used to empower a gas industry.
  1. Ensure that there is a comprehensive approach to the mitigation process which includes, inter alia:
  • A balanced approach between supply measures and energy efficiency-demand side management;
  • Addressing the infrastructure rehabilitation backlog;
  • Addressing regulatory constraints e.g. improve PPAs with Municipalities;
  • Expediting legislative refinement of the ERA, strengthening the authority and independence of NERSA etc.

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