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Stellenbosch University

Presented by: Maloba G. Tshehla Supervisor: Prof. A. C. Brent. A literature analysis of barriers and policy opportunities for the growth of renewable energy technologies at the municipal level. Stellenbosch University. Energy Postgraduate Conference 2013. High carbon emissions.

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Stellenbosch University

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  1. Presented by: Maloba G. Tshehla Supervisor: Prof. A. C. Brent A literature analysis of barriers and policy opportunities for the growth of renewable energy technologies at the municipal level Stellenbosch University Energy Postgraduate Conference 2013

  2. High carbon emissions Signatory to Kyoto Protocol Introduction and Problem Statement South Africa Historic coal dependence Minerals-energy-complex (MEC) Cheap electricity - Constitutional obligations to citizenry - Ambiguity of electricity jurisdiction legislation Municipal dilemma - Possible financial risks of RE implementation - Ensure economic sustainability and development - Contribute to national sustainable development effort - Address potentially harmful advent of RETs

  3. A complex approach Open and therefore constantly interacting with Environment  adaptive Opento their environment Therefore operating far from equilibrium Large number of elements Complex system Positive & negative feedback loops Dynamic, non-linear interactions between components Interactions between components result in Emergent properties History spread throughout entire system

  4. Aim and objectives Aim: To assist municipalities to address the municipal dilemma • Determine the major barriers • to the implementation of RETs in South Africa. Objectives: • Identify energy and municipal management • legislation conducive to the implementation of RETs Exploration to be conducted within the framework of municipalities being embedded within a larger complex system

  5. The energy policy landscape White Paper on Renewable energy Policy of RSA National Energy Regulator Act Integrated Energy Plan (IEP) + Integrated Resource Plan (IRP) Constitution of the Republic of South Africa National Energy Act DoE Strategic Plan Electricity Regulation Act (and amendments) Electricity regulations On new generation capacity

  6. Constitution of the Republic of South Africa Municipal management policy landscape Public Finance Management Act National Gov. Provincial Gov. Local Gov. Municipal Energy Strategies Municipal Structures Act Municipal Integrated Development Plans (IDPs) Municipal Systems Act (and amendments) Municipal Fiscal Powers and Functions Act Municipal Finance Management Act (MFMA)

  7. South Africa’s history Barriers to growth of RETs Economic barriers Subsidization of conventional technologies Non-cost competitiveness and lack of investments Vested interests Technology lock-in Institutional, Political & Regulatory barriers Frustrating bureaucracy Inconsistent flow of policy Lack of standards Solar PV module learning curve for crystalling silicon and thin-film. Source (EPIA & photovoltaic technology platform, 2011; Liebrich, 2011, Sologico, 2012; IRENA, n.d., in Poni & Brent, 2013) Technical barriers Technology maturity Typical S-curve of technology improvement. Source (Schilling & Esmundo, 2009) Lack of resources

  8. Barriers: The case of South Africa South Africa’s minerals-energy history Coal fired generation dependence Vested investment decisions Heavily vested interests Biased subsidisation of conventional technologies Inconsistent flow of policy Web of frustrating political and regulatory barriers ..culminating in the “failure of numerous renewable energy documents to set concrete, workable targets” (Krupa & Burch, 2011: 6258)

  9. Conclusion Sustainable provision of services Revision of country’s energy supply mix Policy provisions Universal electrification Creative interpretation of the MFMA and other regulations Municipal entities | ESCOs | PPPs South Africa’s history Major barriers Institutional, political and regulatory barriers

  10. Recommendations Address numerous facets of the municipal dilemma Embrace RETs Take advantage of South Africa’s RE resources Follow global trends Empower municipalities Long term, gradual increase in municipal capacity Best positioned to inform the ‘system’ Learning-from-doing | Bottom-up approach …ultimately, Eskom tariffs will increase, requiring the cultivation of a new energy-consumption culture in South Africa, and it is proposed that this cultivation begin closest to home, at the municipal level

  11. Thank you…

  12. References • Department of Energy (DoE). 2011. Integrated Resource Plan (IRP) 2010– 2013. • Department of Energy (DoE). 2012. Revised Strategic Plan 2011/12 – 2015/16. • Department of Minerals and Energy (DME) 2002, White Paper on the promotion of renewable energy and clean energy development: Part One- promotion of renewable energy. • Department of Treasury (DoT) 2010, Discussion Paper for Public Comment: Reducing Greenhouse Gas Emissions- The Carbon Tax Option. • Jamasb, T. & Kohler, J. 2007. Learning curves for Energy Technology: A Critical Assessment. In M. Grubb, T. Jamasb & M. G. Pollitt (eds.). Delivering a Low Carbon Electricity System: Technologies, Economics and Policy, Cambridge University Press • Janisch, A., Euston-Brown, M., &Borchers, M. 2012, The potential impact of efficiency measures and distributed generation on municipal electricity revenue: Double whammies and death spirals. Sustainable Energy Africa • Krupa, J. & Burch, S. 2011, A new energy future for South Africa: The political ecology of South African renewable energy. Energy Policy, 39: 6254-6261 • National Energy Regulator of South Africa (NERSA). 2011. Standard Conditions for Embedded Generation within Municipal Boundaries • Painuly, J. P. 2000.Barriers to renewable energy penetration; a framework for analysis. Renewable Energy, 24: 73-89 • Philibert, C. 2006.Barriers to Technology Diffusion: The Case of Solar Thermal Technologies. International Energy Agency (IEA • Reinecke, J., Leonard, C., Kritzinger, K., Bekker, B. & Thilo, J. 2013. Unlocking the Rooftop PV Market in South Africa. Centre for Renewable and Sustainable Energy Studies • Republic of South Africa. 1996. Constitution of the Republic of South Africa Act 108 of 1996. • Republic of South Africa. 1998. Local Government: Municipal Structures Act 117 of 1998. Cape Town. Government Gazette. • Republic of South Africa. 2000. Local Government: Municipal Systems Act 32 of 2000. Cape Town. Government Gazette. • Republic of South Africa. 2004. National Energy Regulator Act 40 of 2004. Cape Town. Government Gazette. • Republic of South Africa. 2006. Electricity Regulation Act4 of 2006. Cape Town. Government Gazette. • Republic of South Africa. 2008a. Electricity Regulation Amendment Act.28 of 2007. Cape Town. Government Gazette. • Republic of South Africa. 2008b. National Energy Act34 of 2008. Cape Town. Government Gazette. • Republic of South Africa. Department of Energy. 2011, Electricity Regulation Second Amendment Bill, Notice 905 of 2011. • Republic of South Africa. Department of Minerals and Energy. 2003b.White Paper on Renewable Energy. Government Gazette no: 26169, 14 May. • Trollip, H., Walsh, V., Mahomed, S. & Jones, B. 2012, Potential impact on municipal revenue of small scale own generation and energy efficiency. Submitted to the South African Economic Regulators Conference, Pretoria.

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