The South African energy minister, Jeff Radebe, delivered an address prior to the budget vote speech on Wednesday underlining the key focus areas going forward.
Highlighting President Ramaphosa's target to attract $100 billion of investment into our economy, Radebe wants a quarter of this to be achieved by the power and energy sector.
This ambitious goal the minister claims could be reached by implementing several initiatives, namely:
- Securing strategic stock through investment in new fuels tanks and in infrastructure required for South Africa to become a major shale gas producer.
- Promoting natural gas by designing and building infrastructure required to transport natural gas and liquefied natural gas (LNG).
- Driving towards cleaner fuels by improving our refinery assets to meet world class emission standards.
- Supporting the transition towards electrification of transport, through key strategic partnerships.
The minister further highlighted that the country’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) will continue to drive investment with the recent IPPs securing R56 billion of investment into 27 new projects.
The country’s coal and gas programmes will contribute towards this goal.
In addition, Radebe committed to open the revised Integrated Energy Plan (IEP), Integrated Resource Plan (IRP) for consultation with all key stakeholders and the public with an aim of submitting the policy adjusted IEP, IRP, Liquid Fuels and Gas Master Plans to Cabinet by August 2018 for approval.
“We will continue to engage with our counterparts and play our role in the multilateral organisations such as BRICS and host the BRICS Energy Ministers' Meeting and BRICS Working Group on Energy Saving and Improvement of Energy Efficiency.
“In pursuit of the continental economic integration agenda and to ensure facilitation of energy sector participation in the SADC region, Africa and the rest of the world in the bilateral and multilateral forums, the Department will host the SADC Energy Ministers Meeting.”
“Reform of state-owned enterprises is one of the major themes that the President underlined in his State of the Nation Address. The President has stressed the need for Government to restore State-Owned Enterprises (SOEs) as drivers of economic growth and social development.
“SOEs are a crucial part of achieving economic recovery, transformation and promoting sustained economic development.”
Later on Wednesday afternoon, the deputy minister of energy, Ambassador Thembisile Majola, delivered the official budget speech. View the full speech here.