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Labour cannot be ‘left behind’ in energy transition

13th July 2018

By: Terence Creamer

Creamer Media Editor

     

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Energy Minister Jeff Radebe has urged business to support government in ensuring that South Africa’s energy transition is a “just” one for labour, especially those operating in the coal mining sector.

In an engagement with business leaders in Johannesburg, following the recent meeting of the Energy Ministers from the Brics bloc of Brazil, Russia, India, China and South Africa the day earlier, Radebe said a collaborative effort was required to ensure that labour was not “left behind”.

A Cabinet-approved draft Integrated Resource Plan (IRP) would be released “soon” for public comment ahead of final promulgation in August.

The updated IRP would improve policy certainty for investors, in line with government’s vision of ensuring that energy investments contributed 25% of the $100-billion investment target set by President Cyril Ramaphosa for the coming five years.

The plan is expected to include higher levels of private participation in power generation and to increase the role of both renewable energy and natural gas in South Africa’s electricity mix.

However, Radebe stressed that, for the energy transition to succeed, it needed to be aligned with the National Development Plan’s goals of eliminating poverty, raising employment and reducing inequality.

Besides articulating a clear vision for the country’s energy transition, Radebe argued that the social partners needed to clearly define the roles that should be played by government, business and labour, as well as communities, in the transition.

“For the energy transition to be just, we must also ensure that we do not leave labour behind.

“We need to especially consider the effects of the energy transition on the mining economy and we need to find ways of transitioning those economies and affected areas to newer, more sustainable models over the coming period.”

Radebe urged the business community to ensure that energy-related investments were pursued in a way that was increasingly supportive of black, women and youth empowerment.

South Africa has also proposed that the Brics bloc extends the scope of its energy cooperation beyond that of energy savings and energy efficiency to include a range of other issues arising as a result of the “global energy transition”.

Radebe told Brics Energy Ministers that the rapid change towards more environmentally sustainable energy systems was impacting directly on the plans and policies of Brics member States. Therefore, it was an opportune time for the bloc to consider extending the areas of cooperation in the energy sector.

He urged members to consider the establishment of a “committee of senior officials to coordinate, elevate and advance Brics cooperation and implementation of mutual energy activities”.

Common areas for collaboration were listed as renewable energy, energy storage, electric vehicles, natural gas, energy efficiency, digitalisation, smart and micro grids, electrification and strategic energy sourcing and security. Also flagged were the issues of finance for energy infrastructure and industry development.

The Minister highlighted the growing role of renewable energy within the energy systems of Brics countries, adding that significant progress had been made in prioritising renewable energy in the respective national development plans of member States.

“Throughout our chairship this year, South Africa will ensure the programmatic continuity for Brics and will bring specific focus to the challenges, opportunities and practical solutions in the context of the Fourth Industrial Revolution and the global and intra-Brics transition to more environmentally sustainable energy systems.”

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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