Presentation to the Portfolio Committee on Energy on Skills Development in the Energy - PowerPoint Presentation

1. Presentation to the Portfolio Committee on Energy on Skills Development in the Energy Sector EWSETA Corporate Services ExecutiveMrs. Candice Moodley1

2. IntroductionAn overview of the EWSETA A discussion on the sector and skills area it covers, including any programmes 3.1 The Energy Sector 3.2 Skills areas and programmes covered Some overview of the number and types of skills it produces A discussion on placement of these skills in the market place including a discussion on the working relationship the SETA has with industry and the Government sector (at all levels)CONTENTS 2

3. What gaps in terms of skills to serve the SA energy sector has the SETA identified, including key and critical skills, and what is currently being done at the SETA to address this?What is currently being done at the SETA to prepare SA for the proposed energy expansion programmes?A discussion on some of the challenges identified at the SETA and how are these being addressed?CONTENTS 3

4. An Overview of the EWSETA The Energy and Water Services Sector Education and Training Authority (EWSETA) is a skills development authority responsible for skills development within the energy and water services sector. The EWSETA has the mandate to manage the skills development needs of the Energy and Water Services Sectors through strategic sector skills planning within the framework of the National Skills Development Strategy lll. The occupational coverage of the EWSETA includes water, gas and electricity.The electricity sector in South Africa is dominated by the national utility Eskom, which owns and operates most of the national electricity generation infrastructure and supplies 95% of the country’s electricity requirements. The balance is supplied by municipalities and redistributors (4%), as well as private generators (1%). The gas sector in SA is relatively small with many of the big firms involved in wholesaling and retailing gas.4

5. An Overview of the EWSETA cont… There are approximately 129 592 people working in the EW sector in SA. There are 91 115 people working in the electricity, 33 223 in water and 5 254 in the gas sectors. The EW sector comprises 0.9% of the total labour force. Virtually all employees are in the formal sector. There are a mere 3 246 employees in the informal sector. This means that employees in the EW sector are accessible for skills training since their employers are in the formal sector.5% of the workforce in the Energy and Water sector has up to primary level education, 50% up to secondary level, and 45% of employees have completed tertiary education. This is relatively high compared to other economic sectors. The secondary and tertiary levels, collectively make up 95% of the sector’s workforce.5

6. An Overview of the EWSETA cont… The historic lack of alignment between the organisational, strategic and governance requirements of the organisation has been addressed by a revised organisational structure, which was approved by the Board in 2013. The EWSETA has moved from a sector based structure to a value chain structure in order to respond adequately to sector needs. This includes opening regional offices, with the first already operational in the Western Cape.The size of the EWSETA’s revenue relative to demand for skills in the sector necessitates that we partner with technical and vocational education and training (TVET) colleges to meet intermediate skills needs and universities for high skills needs. The implementation of structural changes is also affected by having to keep administrative costs to an effective 10.5% of the annual budget. The revised organisational structure is therefore being implemented in a phased manner, with an initial focus on areas aimed at increasing revenue streams. EWSETA Total Budget for 2015/16: R 229,210,000.00 6

7. The Energy Sector and Skills Area coveredThe EW sector is relatively small in terms of employer and employee size (± 129 592 employees).Over 84% of employees are in permanent employment. Hardly any informal sector employment.SA experiencing shortages of qualified, experienced, registered engineers.The shortage of engineers and artisans are resulting in deteriorating water and energy infrastructure.EWSETA’s role in SIPs is in expanding access to water and energy, supporting greening skills development.The scale of infrastructure challenges ahead requires skilled people in a number of occupations identified on the Scarce Skills Lists. Many of these challenges can be addressed through Strategic Infrastructure Partnerships.7

8. The Sector and Skills Area covered cont…Occupations in DemandOFO CODEOCCUPATIONPROGRAMMES213306Water Quality AnalystBursaries214201Civil EngineerBursaries214301Environmental EngineerBursaries215101Electrical EngineerLearnerships; Apprenticeships; Bursaries215103Energy EngineerBursaries642602Solar InstallerLearnerships; Apprenticeships; Bursaries671101ElectriciansLearnerships; Apprenticeships; Bursaries8

9. Number and Types of SkillsPrimary Energy Mix9

10. Number and Types of Skills cont…Primary Energy Mix10

11. Number and Types Of Skills cont…Potential Direct EMP (Green jobs)11

12. Number and Types of Skills cont…Potential Direct EMP (Green jobs)12

13. Placement of these skills & working relationship with industry and Government13GOVERNMENTDEPARTMENT OF ENERGYEWSETA part of the DOE Human Resource Development (HRD) ForumCompleted EWSETA funded Work Integrated Learning (WIL) for 30 graduates in Electrical Engineer. All graduate were subsequently placed at DOECurrently DOE requested funding to place 50 graduates –Budget deficit notwithstanding, the project will be recommended for fundingMeeting in the pipeline between EWSETA and DOE to discuss partnership on the following projects:South African Nuclear Energy Cooperation (NECSA) and National Energy CSA/CSNPTC (China State Nuclear Power Technology Corporation)Nuclear Energy Training ProgrammeNECSA’s Nuclear Training AcademyNECSA/EWSETA Collaborative Agreement

14. Placement of these skills & working relationship with industry and Government14GOVERNMENT2) NORTHEN CAPE PROVINCIAL GOVERNMENTCollaborative Agreement signed with the Office of the Premier to support Northern Cape Provincial Growth Development StrategyService Level Agreement signed with the Provincial Government, the two Northern Cape TVET Colleges (Rural & Urban) for the establishment of the Renewable Energy Centre of Excellence (RECE). The purpose of RECE are the following:Localisation of solar technology and development of the necessary skills that renewable energy industry requiresSource of skills to ensure that direct employment is supported locallyEnsure sufficient pool of skills for the establishment of local manufacturing capabilities and sustainment of SMMEsJob opportunities created to operationalize RECEResearch and Development in RE

15. Placement of these skills & working relationship with industry and Government15GOVERNMENT2) EASTERN CAPE PROVINCIAL GOVERNMENTCollaborative Agreement signed with the Office of the Premier to support THE Eastern Cape Provincial Growth Development StrategyThe purpose of the Agreement is to facilitate implementation of skills development programmes that are aimed at equipping recipients with requisite skills in amongst other the energy sector, particularly in the rural communities3) VHEMBE DISTRICT MUNICIPALITYService Level Agreement signed with Vhembe District Municipality for the following interventions:25 unemployed learners are supported on Electrical Engineering Learnership25 on Chemical Engineering Learnership

16. Placement of these skills & working relationship with industry and Government16GOVERNMENT4) VHEMBE DISTRICT MUNICIPALITYService Level Agreement signed to support on the following interventions:25 unemployed learners are supported - Electrical Engineering Learnership25 learners supported - Chemical Engineering Learnership5) EHLANZENI DISTRICT MUNICIPALITYService Level Agreement signed to support on the following interventions:- 60 learners supported - Electrical Engineering Learnership- 60 learners supported – Mechanical Engineering Learnership6) RUSTENBURG MUNICIPALITYService Level Agreement signed to support on the following interventions: - 15 unemployed learners - Electrical Engineering Learnership

17. Placement of these skills & working relationship with industry and Government17GOVERNMENT7) TECHNOLOGY INNOVATION AGENCY60 students participated in an Internship programme43 (72%) were successfully gained employedTIA requested further support for 30 graduates to be placed- Budget deficit notwithstanding, the project will be recommended for fundingTECHNICAL VOCATIONAL EDUCATION AND TRAINING (TVETs)1) ORBIT TVET120 funded on WIL Electrical Engineering - North West60 unemployed learners on Electrical Engineering Learnership to be placed for WIL-North West2) SEKHULHUNE TVET60 unemployed learners on Electrical Engineering Learnership to be placed for WIL - Limpopo Province

18. Placement of these skills & working relationship with industry and Government18TECHNICAL VOCATIONAL EDUCATION AND TRAINING (TVETs)3) VUSELELA TVET90 unemployed learners on the Electrical Engineering Learnership will be placed for WIL – North West30 unemployed learners on Electrical Engineering Artisanship programme will be placed for WIL – North West4) COLLEGE OF CAPE TOWN 60 students funded on WIL in Electrical Engineering – Western Cape180 supported in Electrical Engineering Bursaries and 150 on Electrical Infrastructure Construction Bursaries150 FET Educators supported on capacity building skills programmes5) CAPRICORN TVET60 students on the Electrical Engineering Learnership to be placed on WIL

19. Placement of these skills & working relationship with industry and Government19TECHNICAL VOCATIONAL EDUCATION AND TRAINING (TVETs)6) EASTCAPE MIDLANDS TVETSLA signed to fund the following:- Refurbishment of Green Technology Centre- Renewable Energy Training equipment7) WEST COAST TVET75 students supported in the Renewable Energy System Design Skills Programme75 supported in the Electrical Engineering Learnership 75 supported on artisan development programme in Electrical Engineering8) SOUTH CAPE TVET15 students supported on the Electrical Engineering WIL programme

20. Placement and working relationship with Industry and Government HIGHER EDUCATION INSTITUTESCollaborative Agreements signed with the a number of Universities and one of the key objectives is to equip students with experiential learning:University of Johannesburg (UJ)University of Stellenbosch (US)Nelson Mandela Municipal University (NMMU) – Development of Advanced Diploma in Renewable Energy (ADRE)Cape Peninsula University of Technology (CPUT)University of Limpopo (UL)Durban University of Technology – SLA signed for the establishment of Clean Energy Education and Empowerment Mobile Training and Development Unit. The Unit to offer the following:Short courses on installation and Maintenance of Solar Water HeatersEquipment demonstrating how solar energy works and to make school pupils aware of alternative and renewable energyAddress marketing/branding of products of DUTs including energy related offeringsAddress community engagement programmes of which some respond to energy sector

21. Placement and working relationship with Industry and Government CIVIL SOCIETY 1) SOUTH AFRICAN NATIONAL APEX OF COOPERATIVES (SANACO)Collaborative Agreement signed with SANACO in 2013Service Level Agreement has been signed with SANACO to implement phase two of project involving 175 unemployed learners and 50 cooperatives in all the provinces excluding Gauteng and Western Cape. The project is NQF 2 Learnership on Electrical Engineering2) IPHUPHU INVESTMENTS (PTY) LTD500 Military Veterans supported in a Solar Heating Installation skills programme3) FASEGO350 unemployed youth in North West Province supported in a Solar Heating Installation skills programme

22. Placement and working relationship with Industry and Government CIVIL SOCIETY 4) QAKASA MANAGEMENT SERVICES100 unemployed youth in Gauteng supported in Electrical Engineering Learning Programme5) WEST RAND YOUTH DEVELOPMENT (WRYD)100 unemployed youth in Gauteng Province supported to participate in Solar Heating Installation skills programme6) DESMOND TUTU LEADERSHIP CENTRE (DTLC)100 unemployed youth in the Mpumalanga Province to participate in the Solar Water Heater Installation skills programme

23. Placement and working relationship with Industry and Government CIVIL SOCIETY 7) ELDOS WOMEN IMBOKOTO50 unemployed youth supported to participate in the Electrical Engineering National Certificate Vocational Certificate programme20 unemployed youth supported to participate in the Electrical Engineering Artisan Programme5) GRADUATE PLACEMENT PROGRAMME10 graduates supported to be placed on the Electrical Engineering WIL programme

24. What gaps in terms of skills to serve the SA energy sector has the SETA identified, including key and critical skills, and what is currently being done at the SETA to address this?One of the major problems currently in the South African skills development environment is that the identification of scarce skills does not appear to be supported by a factual, evidence‐led enquiry. Thus, the nature of skills needs and the quantum skills imbalances in the labour market are often misdiagnosed, misunderstood and mistreated.The following change drivers in the Energy Sector were identified: Renewable Energy Strategy, green issues, skills shortages in electricity management and civil engineering, Strategic Integrated Projects, and unemployment.The President launched the Strategic Integrated Projects (SIP’S) of which there are three Energy SIP’s that we need to respond to 24

25. What gaps in terms of skills to serve the SA energy sector has the SETA identified, including key and critical skills, and what is currently being done at the SETA to address this? cont…SIP 8: Green energy in support of the South African economySupport sustainable green energy initiatives on a national scale through a diverse range of clean energy options as envisaged in the Integrated Resource Plan (IRP2010) and support bio-fuel production facilities.SIP 9: Electricity generation to support socio-economic development Accelerate the construction of new electricity generation capacity in accordance with the IRP2010 to meet the needs of the economy and address historical imbalances. Monitor implementation of major projects such as new power stations: Medupi, Kusile and Ingula.25

26. What gaps in terms of skills to serve the SA energy sector has the SETA identified, including key and critical skills, and what is currently being done at the SETA to address this? cont…SIP 10: Electricity transmission and distribution for all Expand the transmission and distribution network to address historical imbalances, provide access to electricity for all and support economic development. Align the 10-year transmission plan, the services backlog, the national broadband roll-out and the freight rail line development to leverage off regulatory approvals, supply chain and project development capacity.26

27. What gaps in terms of skills to serve the SA energy sector has the SETA identified, including key and critical skills, and what is currently being done at the SETA to address this? Cont…Skills GapSix occupation categories were identified as key drivers of the SIP’sProfessionals and Associates ProfessionalsMost professions identified as priority professions for delivering the SIP’s are associated with the planning, design, development, operations and maintenance of the projects.Clerical and Support Workers In the context of the SIP’s two support occupations which required specific attention. They are project administrators and store persons.27

28. What gaps in terms of skills to serve the SA energy sector has the SETA identified, including key and critical skills, and what is currently being done at the SETA to address this? Cont…Trades (Artisans)The greatest occupational demand for the SIP’s is trades, the current artisans in the labour market will need to be replaced by the year 2020 as they are aging.Addressing the projected shortfall of artisans has now become a national priority.The Medium Term Strategic Framework for 2014-2020 has brought forward the National Development Plan target of 30,000 qualified artisans per annum by 2030 to 2026.Operators A number of these operators have been listed as scarce with respect to delivering of the SIP’s.The scarcity articulated by industry refers largely to experienced operators the majority of are over 45.28

29. What gaps in terms of skills to serve the SA energy sector has the SETA identified, including key and critical skills, and what is currently being done at the SETA to address this? Cont…Elementary OccupationsElementary and non trade production workers cover occupations which requires elementary knowledge and experience to perform routine tasks using hand tools and considerable physical effort.Elementary construction occupation workers perform a variety of general labouring and construction duties to assist building, civil engineering and related trade workers in the performance of their tasks. Training is typically provided in informal workbased settings and formal short courses or skills programmes.29

30. What gaps in terms of skills to serve the SA energy sector has the SETA identified, including key and critical skills, and what is currently being done at the SETA to address this? Cont…Managers The Public Service is responsible for macro socio-economic policy making on infrastructure and the architect of an enabling environment for national development.Public Service management covers such aspects of management as productivity management, professional and technical, management of human, financial and other resources.It involves range of activities ranging from planning, formulation and implementation of policies, programmes and projects for the delivery of goods and service to the nation through a number of government and quasi- government institutional arrangements.Developing management capacity requires more than attendance of one or two short courses. In terms of building a capable state, management in the public sector must be strengthened. 30

31. What gaps in terms of skills to serve the SA energy sector has the SETA identified, including key and critical skills, and what is currently being done at the SETA to address this? Cont…EWSETA has responded to the DHET call for commitments to SIP priorities and will be placing strategic focus on the funding of learning programmes that respond to these SIP priorities through our Sector Skills Plan and Discretionary Funding processDevelopment of Occupational Qualifications that are on the critical scarce skills list:Energy Audit Technician andEnergy Management Advisor Continuous collaboration with Higher Education Institutions for curricular development (EWSETA / NMMU development of an Advanced Diploma in Renewable Energy)31

32. What is currently being done at the SETA to prepare SA for the proposed energy expansion programmes? Renewable Energy Centre of Excellence (RECE)In responding to the skills needs for alternative energy the EWSETA has launched a Renewable Energy Centre of Excellence in Upington in the Northern Cape Province.Green Skills Development Strategy South Africa has embarked on a major policy drive to invest in a green economy. Within the overall concept of sustainable development, green economy refers to a market economy system that is oriented towards ecological sustainability, economic profitability and social inclusion.32

33. What is currently being done at the SETA to prepare SA for the proposed energy expansion programmes? Green Skills Development Strategy (Cont…) The green economy has the potential to be a new engine of growth, a net generator of decent jobs and a vital strategy to reduce poverty. South Africa’s New Growth Path of 2010 identifies the green economy as one of the key sectors for employment creation with a potential of creating 300 000 additional direct jobs by 2020.The skills development sector plays an essential role in the transition to a green economy.The aim of the strategy is to provide a coherent framework that supports the development of required skills for greening South Africa’s energy sector.33

34. What is currently being done at the SETA to prepare SA for the proposed energy expansion programmes? Energy Research Equitable Energy and Water for all Baseline Study Decentralising energy production and service delivery (water, energy, sanitation and waste management) taps into the essence of the challenges facing South Africa as a country today.Strategically, it mitigates our energy poverty, with service delivery and job creation as pillars that underpin the advancement of the socio-economic agenda to the benefit of all South Africans.Creating pilot projects within areas where problematic supply exists, more specifically in rural and urban spatial frameworks.34

35. What is currently being done at the SETA to prepare SA for the proposed energy expansion programmes? Prediction of Future Energy Scenarios Also through partnering and funding the University of Johannesburg, the EWSETA commissioned the above study incorporated in its Northern Cape strategic intervention.With a particular focus on the Northern Cape Province and the renewable energy (RE) and energy efficiency (EE) industries, this study details the current career pathways specific to South Africa, forecasts the skills demand up to 2030 and concludes with a skills development plan.Thus motivating relevant training of scarce skills for the implementation of RE and EE specific training programmes within local TVET colleges.35

36. What is currently being done at the SETA to prepare SA for the proposed energy expansion programmes? PartnershipsTVET Colleges – Provincial Spread36

37. PARTNERSHIPSTVET COLLEGESTVET CollegesEastern CapeBuffalo City Public FET CollegeEastcape Midlands CollegeIngwe FET CollegeLovedale FET CollegePort Elizabeth CollegeFree StateFlavius MarekaMotheo FET CollegeKwazulu-NatalUmfolozi FET CollegeLimpopoLetaba FET CollegeSekhukhune FET CollegeVhembe FET CollegeCapricon FET CollegeMpumalanga Gert Sibande FET CollegeNorth WestOrbit FET CollegeTaletso FET CollegeVuselela FET CollegeNorthern Cape Northern Cape Rural FET CollegeNorthern Cape Urban FET CollegeWestern CapeBoland FET CollegeCollege of Cape TownSouth Cape CollegeWest Coast FET CollegeGautengEkurhuleni West College37

38. What is currently being done at the SETA to prepare SA for the proposed energy expansion programmes? Government AgenciesGauteng City Region Academy (GCRA)Ehlanzeni District MunicipalityVhembe District MunicipalityDepartment of EnergyDepartment of Water and SanitationDepartment of Public WorksNorthern Cape Provincial GovernmentEastern Cape Provincial GovernmentDepartment of Human Settlements Municipal Infrastructure Support Agency (MISA)South African Qualification AuthorityRustenburg Local MunicipalityCamdeboo Local MunicipalityImpendle Local Municipality 38

39. Strategic EngagementCEO’s visit to Moscow (Nuclear) During a recent study visit to Moscow the CEO visited the Russian State Atomic Energy Corporation “ROSATOM”.ROSATOM has presence and operations on 5 continents and more than 40 countries. The key segments are: uranium enrichment, new NPP (nuclear power plant) construction, Russian electricity generation (25.2 GWe installed capacity), integration within its structure is the utility which operates 2nd biggest NNP fleet in the world.The safe and mature VVER technology of ROSATOM is one of the most referenced in the world and in terms of its global fleet, has constructed 68 and operating 55 NNP’s globally. All Russian designed reactors, including 37 VVER units operating outside of Russia, successfully passed stress-tests, among those are 18 VVER units in 5 EU countries supported by ROSATOM. At the moment, there are another 30 NNP‘s in progress, 20 in a tendering process/negotiations and 32 potential projects.What is currently being done at the SETA to prepare SA for the proposed energy expansion programmes? 39

40. What is currently being done at the SETA to prepare SA for the proposed energy expansion programmes? CEO’s visit to Moscow (Cont…) In terms of its key activities ROSATOM has presence in mining, gas centrifuges manufacturing, conversion and enrichment, fuel fabrication, NNP’s engineering and construction, power generation, O&M, service, electricity trading, spent nuclear fuel treatment, power equipment and services, research and development.ROSATOM offers a unique integrated NNP construction solution: energy solution, industrial solution, financial solution, safety solution, knowledge/skill/human capital solution, as well as regulation, infrastructure and public acceptance solutions.ROSATOM has extended no less than 20 state-funded scholarships for undergraduate and deserving South African students to study at their facilities in Moscow.40

41. What is currently being done at the SETA to prepare SA for the proposed energy expansion programmes? CEO’s current visit to the Netherlands In line with the EWSETA Strategy to engage International Partners to support and inform our skills development and training initiatives in the EW Sector including: sourcing alternative funding, research and development, infrastructure and technology best practice and implementation, the CEO will be meeting with a number of key stakeholders in the Energy SectorSome of these stakeholders include:SANEC (South African Netherlands Chamber of Commerce)Caudrilla (leading company in natural gas exploration and hydraulic fracturing)IRO (Association of Dutch Suppliers in Oil and Gas Industry – Members cover all activities involved in the supply industry, such as engineering, field development, pipeline installation, maintenance, manufacturing and material & equipment supply, onshore as well as offshore)Wind Energy Solutions (leading company in wind turbine manufacturing with more than 1.000 units installed worldwide)Shell – with Shell’s plans to implement Hydraulic Fracturing in SA, a partnership needs to be finalized in terms of localising skills required for their programme41

42. What is currently being done at the SETA to prepare SA for the proposed energy expansion programmes? South Africa Oil and Gas Alliance (SAOGA) (Oil and Gas) The South African Oil & Gas Alliance is a public-private partnership with around 170 member companies who are dedicated to developing the upstream supplier base in South Africa.SAOGA has established Marine, Oil & Gas Academy (MOGA) is to facilitate coordination of the various skills initiatives from industry, government and trainingMOGA will nurture an enabling environment for human capital development in the Marine, Oil & Gas sectors in South Africa.Skills Summit Saldanha BayOn 17 & 18 March 2015, EWSETA will host the first EWSETA Skills Summit in Saldanha Bay, the economic hub of the Oil & Gas sector. 42

43. A discussion on some of the challenges identified at the SETA and how are these being addressed?ChallengeSolutionThe one critical challenge is inadequate funding to carry out our mandate for skills development.EWSETA is engaging both national and international partners to source alternative fundingAnother serious challenge is the misalignment of funds from employers in the energy and water sector, whose levies go to other SETA’s (MerSETA, CHIETA)A high level intervention from DHET or the PCoE will assist to ensure that fund allocation to SETAs is correctly alignedAccess to workplaces for learners as industry do not want to take on the responsibility for the learnersSector Collaboration Branch focussing on Industry partnerships for WILInsufficient number of training providers (public) offering energy qualificationsResearch being conducted to inform EWSETA strategyRenewed focus on Nuclear EnergyQualification development strategyScaling up of successful regional projects due to lack of fundsSourcing of funds from strategic partners for national implementation of successful regional projectsDelay in implementation of approved projects by implementing agentsInternal Project Management Unit to monitor and evaluate project implementation43

44. “Greatness is not where we stand, but in what direction we are moving....we must sail, sometimes with the wind, sometimes against it, but sail we must, and not drift nor lie at anchor.”- Oliver Wendell Holmes, Sr. (1809-1894)American physician, poet, professor, lecturer, author, and medical reformer.CONCLUSION 44

45. THANK YOU Corporate Services Executive (011) 274 4700candicem@eseta.org.za45