By Lehlohonolo Lehana.
The Africa Energy Indaba 2024 opened in Cape Town, the legislative capital of South Africa, Tuesday, aiming to drive the energy agenda across the globe and eradicate energy poverty on the African continent.
More than 4,000 participants attended the 16th edition of the Africa Energy Indaba, featuring the theme “African Energy Transitioning from Aspiration to Action – Delivering a Sustainable and Prosperous Future.” Government ministers, investors, industry experts and energy users gathered here to discuss and pursue lasting solutions for energy transition.
The three-day event also featured at least 156 notable speakers and more than 200 exhibitors who introduced cutting-edge technologies and solutions that will drive the continent’s renewable energy transition and foster change in the energy sector.
Mineral Resources and Energy Minister Gwede Mantashe delivered a keynote address, saying the Bid Window 8 of government’s Renewable Independent Power Producer Procurement Programme will be the last bid window under IRP 2019.
Mantashe noted that IRP 2019 is currently being updated into IRP 2023.
He said government would issue requests for proposals for 5 616 MW of renewable energy under Bid Window 8, as well as for Bid Window 3 of batterystorage, both by the end of the current financiall year.
He added that once this had happened, his Ministry would have had issued more renewable bid windows than “any other Ministry from 2011 to 2018”.
“We have no attitude against renewables. We support all energy technologies that give us energy.”
Mantashe also reiterated that government’s goal to develop 2 500 MW of nuclear power was “not a dream”.
“There will be nuclear in our country in addition to Koeberg. There is already an agreement. Procurement capacity is being worked on and we are investing in that capacity.”
Mantashe emphasised that no party had yet been earmarked to develop government’s nuclear ambitions and that the process would be open to all investors.
He added that government wanted to develop its nuclear capabilities to include nuclear fuel.
“We have rich deposits of uranium in South Africa, but…we are resisted by a partner called the US from developing it up to nuclear fuel stage.
Mantashe added that his department is expected to present a Gas Master Plan to Cabinet this month to address gas supply in the country.
Recent media reports have suggested that South Africa may run out of natural gas supply in 2026, which could have devastating consequences for jobs and manufacturing.
He said government has “noted concerns regarding the current and future gas supply in the South African market due to commercial disputes between Sasol and its customers”.
“Our understanding is that this is in relation to the gas flow decline at source. It is a known fact that natural gas, like other natural resources, is a finite resource and therefore, Sasol reaching a cliff in its gas block in Mozambique is not an anomaly.
“Having noted this eventuality, we, together with the Department of Trade, Industry and Competition (dtic), have established a task team that includes private sector players to develop a joint strategy that will ensure a seamless transition and business continuity, thus ameliorating potential job losses. The DMRE has also completed all the modelling and drafting work for the country’s Gas Master Plan, which we intend to present to Cabinet this month,” the Minister said.
Mantashe emphasised the importance for African countries to invest in gas infrastructure also as a means of transitioning from high carbon emitting energy sources.
To solidify gas supply further, South Africa has entered into a gas sales agreement with the Mozambican State-owned hydrocarbon company which has the potential to “deliver up to 200 petajoules of natural gas”.
“To breathe life into this agreement, PetroSA, another subsidiary of CEF [Central Energy Fund], has applied for a gas trading licence with the National Energy Regulator of South Africa [NERSA]. We are convinced that the granting of this licence will ensure continuous gas supply,” the Minister said.