A South African Case Study Dinga Sikwebu National Education Coordinator South Africas Renewable Energy Independent Power Producer Programme REIPPP May 2011 Integrated Resource Plan IRP ID: 552350
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Slide1
Motivations for a Socially-Owned Renewable Energy Sector: A South African Case Study
Dinga Sikwebu
National Education CoordinatorSlide2
South Africa’s Renewable Energy Independent Power Producer Programme (REIPPP)May 2011: Integrated Resource Plan (IRP); a 20-year electricity plan from 2010 to 20309% of electricity generated will be through renewable energy technologies (photovoltaic, concentrated solar thermal, biomass, biogas, landfill gas, small hydro and wind)
Renewables will make up 42
% of the new build capacity envisaged between now and
2030Slide3
IPP-driven REIPPPOrgans of the state in the energy sector -municipalities and parastatals - are excluded from the Renewable Energy ProgrammeAn instrument to introduce
renewables is not a RE Feed-in Tariff
(REFIT)
but a bidding process called
REBIDSlide4
How will the model work?Calls for tenders will be issued and IPPs will bid in a confidential mannerWinning bidders will then sell electricity to a state electricity utility -Eskom - through 20-year Power Purchase Agreements (PPAs) The basis of bidding will be a
price
(70%)
and other socio-economic
developments objectives
(30%)
For every RE technology there is an applicable tariff or a “cap”Slide5
Govt’s motivation for the modelThe model shields the state and taxpayers from all financial risks associated with the programmeThe model allows the private sector to take the risks and therefore allows government revenue to go to other areas where there are social needsSlide6
Why are we opposed to the REIPPP?National Treasury stands as a guarantor in case Eskom is unable to pay and that the winning companies do not receive rates stipulated in the PPAsEskom as the “buyer” of electricity from IPPs will potential recoup what it pays to independent power producers through electricity tariffs Bidding makes the exercise expensive
&
renewable energy less competitive
Opens the development to domination by multinational corporations in the RE sectorSlide7
The focus on the grid and what this misses outProvision of energy needs to those who remain off-grid How RE can be an important lever that women can use in their struggle for equalityRE as non-commercial means of subsistenceRE as part of larger
efforts
towards energy
democratisation
, energy equality and
a restructuring of societies
away
from production
for profit
RE’s contribution
in constructing new egalitarian relations of production and exchange
Slide8
What extending calls for public and democratic control of energy to RE meansUnions acting as catalysts in the establishment RE cooperatives and other forms of community energy enterprisesBuilding RE parastatals and municipal-owned RE entities
that are under democratic control
with
a strong social mandate
Bringing sites with the greatest abundance of useable
RE sources
such as land under public, community or collective ownershipSlide9
What extending calls for public and democratic control of energy to RE meansStrategic and targeted a local content requirement regime aimed at building a RE manufacturing sector that guarantees jobs and workers rights A search for forms of cooperation and solidarity around energy that will reduce competition and avoid workers of different countries being pitted against each other. Slide10
STOP THE GREEN CAPITALIST GRAB!Build a socially-owned renewable energy sectoras a component a publicly-owned and democratically-controlled energy system!