Equitable Access to Transmission and Distribution Network, with 2 way metering Rationalisation of New Generation Capacity Feed In tariff

Four areas of project activity

to promote sustainable energy and address climate change

• Advocacy and building awareness and capacity,

• Research and information dissemination;

• South-North-South networking and collaboration;

• Supporting the South African Climate Action Network (SACAN)

Advocacy and Raising awareness

Advocating social and environmental justice in the energy sector and in addressing global climate change, including:

• Input to government processes e.g. Integrated Energy Planning (JEP); Renewable Energy & Efficiency Strategies;

• Participation in stakeholder fora, e.g. DME workshops; NCCC;

• Supporting civil society initiatives, e.g. Energy Caucus; CURES;

• Community outreach and capacity building;

• Lobbying of decision-makers.

Information development & dissemination

• Sustainable Energy Briefings;

• E-mail newsletters: SENSE (monthly) & CCEN (hi-monthly);

• Climate Action News (Quarterly);

• Flyers, fact-sheets, posters, information booklets, incl:

• Getting to Grips with Global Climate Governance' &

• Getting to Grips with Sustainable Energy'

www.earthlife.org.za

Research

Commissioning independent research, for a knowledge base focused on public benefits and longer term:

• Policies and Measures for Renewable Energy and Energy Efficiency (EDRC with EM, UCT, April 2003) Employment Potential of Renewable Energy in South Africa (AGAMA Energy, November 2003)

• The Potential of Renewable Energy in South Africa' long-term, to 2050 April 2005 (RAPs Consulting)

South-North- South networking & collaboration

Information exchange, civil society collaboration and developing solidarity with organisations in the South, as well as the North, including participation in the global

• Climate Action Network (CAN), Friends of the Earth International

• Citizens United for Renewable Energy and Sustainability (CURES)

· INFORSE, Climate Justice etc.

• Study Tour: South Africans to Denmark, and DME officials and a parliamentarian (May 2003)

• WSSD: Civil society position papers (first Energy Caucus) and liaison with big NGOs

• Bonn Renewables 2004 & follow-up

South Africa Climate Action Network (SACAN)

• Initial funding to support meetings of SACAN; Production of information materials, including S A Climate Action News (distributed with ground Work newsletter); Providing secretariat services to the network;

• Co-ordination NGO & CBO interaction with government & national processes

• Participation in the National Climate Change Committee and recently National Climate Change Conference

South Africa Policy to give effect to the Electricity Regulation Bill

- Increasing access to affordable energy services

- Improving energy governance

- Stimulating economic development

- Managing energy-related environmental and health impacts

- Securing supply through diversity

Integrated energy planning

What we would like the Electricity Regulation Bill to give effect to Affordability

• Access to energy services for the poor

• Additional burden of cut offs

Stepped Block Tariff

We recommend the Electricity Regulation Bill mandate the NER to implement a Stepped Block Tariff

• Where the initial block of electricity is charged at a lower rate than consumption above a particular threshold, becoming more expensive the more that is used -

• as shown in the next slide

Having a stepped block tariff would correct the negative consequences of current electricity pricing:

• Access to energy services for the poor

• Additional burden of cut offs

• It would correct the unfair benefits enjoyed by big electricity consumers.

• Currently, they are using the vast proportion of SA's electricity without having to pay for any of the costs (externalised cost) associated with producing this electricity.

• It would encourage the efficient use and conservation of electricity.

Stepped Block Tariff

• Reduce energy service costs
• Conservation
• Reduce environmental burden
• Equitable resources to different carrier
• Reduce the demand for electricity

· National Energy Efficiency Agency –

5. The Regulator may appoint committees consisting of as many members of the Regulator, employees of the Regulator and other persons as may be necessary to advise the Regulator in general or on a particular matter.

Equitable Access to Transmission and Distribution Network with two way metering

• Allowing third parties access to the grid will drive competition and utilities to improve efficiencies.

• Lack access to transmission and distribution network is a Barrier to Renewable Energy and IPP

• Access will strengthen networks, Avoid distribution losses and facilitate community participation in distribute generation

Two way metering - include electricity customers selling electricity to grid at a cost equal to that they "customers' buy the electricity from the grid,

• The distribution network with also become a surrogate storage for electricity, driving efficiency

(trans loss) &

New Generation Capacity

White Paper on Energy Policy (DME, 1998):

"Ensuring that an equitable level of national resources is invested in renewable technologies, given their potential and compared to investments in other energy supply options"

• White Paper on Renewable Energy (2003)

"..... is being published to ensure that the renewable energy resources are used optimally."

Target: "..additional 10 000 GWh (0.8 Mtoe) renewable energy contribution.. by 2013.. .this is equivalent to two 660MW coal-fired power stations" = 10 000 GWh per annum

New Generation Capacity

New Generation should not be established in the interest of securing electricity supply only, but should include:

• Job creation if SA generate just 15% of total electricity use in 2020 using RETs, it will create 36 400 new direct jobs, without taking any jobs away from coal-based electricity.

• Over 1.2 million direct and indirect jobs would be generated if a portion of South Africa's total energy needs, including fuels, were sourced with RETs by 2020.

Integrated Energy planning

• Inclusion of all energy services need and supply option

• Including energy savings and efficiency interventions

• Inclusion of all cost & benefits (economic, social and environment)

• Setting goals for the future

We submit that the Regulation Bill make provision for a Feed in Tariff

• Feed-in tariff require the grid-operator respectively the default electricity supplier to purchase electricity from "RE "generators at fixed premium prices

• The regulator will have to set a minimum price standard to regulate the price but also grid access and power purchase

• Will increase Renewable Energy generated electricity

• Feed-In Tariff will create far better conditions for small and medium size enterprises as operators.

• Thus giving better grounds for economic development and black empowerment.

Conclusion

We would like the see Electricity Regulation bill effecting a just transition to sustainable energy, which includes

• Reducing poverty

• Creating jobs

• Increasing Access to affordable energy services.

• Increasing equitable access to transmission and distribution networks

• Increasing the share of Renewable Energy in the energy mix.

Thank you