Strategic Plan, APP and Budget Vote 5 May 2015 Dr Wolsey Barnard Acting Director-General

1. Strategic Plan, APP and Budget Vote • 5 May 2015 • Dr Wolsey BarnardActing Director-General

2. A - BACKGROUND to THE DEPARTMENT OF ENERGY • Background • Legislative and other Mandates • Organisational Structure • SOEs reporting to Minister of Energy • Strategic Outcome Oriented Goals • Revision legislation programme • B - 2015 - 2020 DOE Strategic Plan • Challenges • Priorities for DOE • Per Programme Five (5) Year Outer Targets PRESENTATION LAYOUT

3. C - 2015/16 Annual Performance Plan (APP) • Revisions to Legislative and other Mandates • Performance Indicators, Annual and Quarterly Targets per Programme • Entities Reporting to the Minister of Energy • D - Budget Vote Allocations (CFO) • Budget breakdown • Budget reductions PRESENTATION LAYOUT (cont.)

4. A - BACKGROUND to DEPARTMENT OF ENERGY (DOE)

5. Established in May 2009 – outcome of the split of the Department of Minerals and Energy into Department of Energy and Department of Mineral Resources AIM: Formulate energy policies, regulatory frameworks and legislation, and oversee their implementation to ensure energy security, promotion of environmentally friendly energy carriers and access to affordable and reliable energy for all South Africans. MISSION: To regulate and transform the sector for the provision of secure, sustainable and affordable energy VISION 2025: Improving our energy mix by having 30% of clean energy by 2025. BACKGROUND TO DEPARTEMENT OF ENERGY

6. BACKGROUND TO DEPARTEMENT OF ENERGY (CONT) • The Department operating within the policies defined in the Energy White Paper of 1998, as well as legislative direction given in the National Energy Act, 2008 (Act No. 34 of 2008) which, amongst others mandates the Department to ensure that diverse energy resources are available, in sustainable quantities and at affordable prices, to the South African economy in support of economic growth and poverty alleviation, while taking into account environmental management requirements and interactions amongst economic sectors. • In carrying out this mandate, the Department develops Legislation and Policies; fulfil regulatory function in petroleum industry; implement different Energy programmes and projects; as well as transfer resources and oversee various State owned entities (SOEs).

7. LEGISLATIONS THAT GOVERNS THE ENERGY SECTOR • National Energy Act, 2008 (Act No. 34 of 2008); • Electricity Regulation Act, 2006 (Act No. 4 of 2006), as amended; • Petroleum Products Act, 1997 (Act No. 120 of 1977); • Central Energy Fund Act, 1977 (Act No. 38 of 1977), as amended; • Nuclear Energy Act, 1999 (Act No. 46 of 1999); • National Nuclear Regulator Act, 1999 (Act No. 47 of 1999); • National Radioactive Waste Disposal Institute Act, 2008 (Act No. 53 of 2008); • Petroleum Pipelines Act, 2003 (Act No. 60 of 2003); • Petroleum Pipelines Levies Act, 2004 (Act No. 28 of 2004); • Gas Act, 2001 (Act No. 48 of 2008); • Gas Regulator Levies Act, 2002 (Act No. 75 of 2002); • National Energy Regulator Act, 2004 (Act No. 40 of 2004); and • Abolition of the National Energy Council Act, 1991 (Act No. 95 of 1991); and • Electricity Act, 1987 (Act No. 41 of 1987), as amended.

8. MACRO ORGANISATIONAL STRUCTURE OF DOE Minister Associated Institutions Deputy Minister Department of Energy Office of the DG Ministerial and Parliamentary Services Directorate Audit Services Branch Corporate Services Branch Energy Policy, Planning and Clean Energy Branch Petroleum and Petroleum Products Regulation Branch Energy Programmes and Projects Branch Financial Management Services Branch Nuclear Energy Branch Governance and Compliance

9. ORGANISATIONAL STRUCTURE (CONT) The organizational structure consists of the following seven branches: Energy Policy, Planning & Clean Energy Purpose: Ensure evidence- based planning, policy setting and investment decisions in the energy sector to improve energy security, through supply and demand side options, and increase competition through regulation. Petroleum & Petroleum Products Regulation Purpose:Manage the regulation of petroleum and petroleum products to ensure optimum and orderly functioning of the petroleum industry to achieve government’s developmental goals. Energy Programme and Project Management Purpose:To manage, coordinate and monitor programmes and projects focused on access to energy.

10. ORGANISATIONAL STRUCTURE (CONT) Nuclear Energy Purpose: Manage the South African nuclear energy industry and control nuclear material in terms of international obligations, nuclear legislation and policies to ensure the safe and peaceful use of nuclear energy. Corporate Services Purpose: To provide corporate support to the DOE. Governance and Compliance Purpose: To ensure good corporate governance and compliance by the DOE and its SOEs; and Financial Management Services Purpose: To provide financial management, accounting and supply chain management services to the DOE.

11. LOCATION OF DoE OFFICES • The Department consists of a national office that is situated in Tshwane Metro (MatimbaHouse); and • Nine (9) Regional Offices that are situated in various provinces, namely:- • Eastern Cape (Port Elizabeth); • Free State (Welkom); • KwaZulu-Natal (Durban); • Limpopo (Polokwane); • Mpumalanga (Emalahleni); • Northern Cape (Kimberley); • Western Cape (Cape Town); • Gauteng (Pretoria); and • North West (Klerksdorp).

12. UPDATE ON APPROVED, FUNDED AND UNFUNDED POSTS • Total No of Posts on DoE’s approved establishment : 847 • Total No of Funded Posts: 620 • Total No of Unfunded Posts: 227

13. ENTITIES REPORTING TO THE MINISTER OF ENERGY

14. REVISIONS TO LEGISLATIVES AND OTHER MANDATES

15. REVISIONS TO LEGISLATIVES AND OTHER MANDATES

16. B - 2015-2020 DOE STRATEGIC PLAN (SP)

17. Generation capacity; • Distribution Infrastructure; • Energy Efficiency/Demand Side Management measures; • Access to energy; • Volatility of petroleum product prices; • Aging energy infrastructure; • Cost of energy; • Economic transformation; and • Budget Baseline Reductions CHALLENGES IN ENERGY

18. The Department has identified seven Key Priority areas to focus on in the implementation of the Strat Plan and APP • Electricity supply • Petroleum and gas infrastructure • Effective & Efficient energy utilisation • Policy and legislation • SOE oversight • Targeted training - Department and sector SOEs • Communication KEY PRIORITIES FOR DEPARTMENT OF ENERGY

19. PROGRAMME 2 ENERGY POLICY AND PLANNING BRANCH

20. PURPOSE OF THE BRANCHENERGY POLICY AND PLANNING BRANCH To ensure evidence-based planning, policy setting and investment decisions in the energy sector to improve energy security through supply- and demand-side management options and increase competition through regulation.

21. Energy Policy and Planning Strategic objectives

22. Energy Policy and Planning Strategic objectives

23. Energy Policy and Planning Strategic objectives

24. Energy Policy and Planning Strategic objectives (Cont..)

25. PROGRAMME 3 PETROLEUM AND PETROLEUM PRODUCTS REGULATION

26. PURPOSE OF THE BRANCHPETROLEUM AND PETROLEUM PRODUCTS REGULATION To manage the regulation of petroleum products to ensure optimum and orderly functioning of the petroleum industry to achieve government's developmental goals. Sub-Programmes -- Petroleum Compliance, Monitoring and Enforcement -- Petroleum Licensing and Fuel Supply -- Fuel Price Regulation -- Regional Petroleum Regulation Offices

27. PETROLEUM AND PETROLEUM PRODUCTS REGULATION

28. PROGRAMME 4 ENERGY PROGRAMME AND PROJECTS

29. PURPOSE OF THE BRANCHENERGY PROGRAMME AND PROJECTS To manage, coordinate and monitor programmes and projects focused on access to energy. Sub-Programmes -- Integrated National Electrification Programme -- Energy Regional Offices -- Programmes and Project Management Office -- Energy Infrastructure

30. ENERGY PROGRAMME AND PROJECTS

31. PROGRAMME 5 NUCLEAR ENERGY

32. PURPOSE OF THE BRANCHNUCLEAR ENERGY To manage the South African nuclear energy industry and control nuclear material in terms of international obligations, nuclear legislation and policies to ensure the safe and peaceful use of nuclear energy. Sub-Programmes -- Chief Directorate Nuclear Safety and Technology -- Chief Directorate Nuclear Non-Proliferation and Radiation Security -- Chief Directorate Nuclear Policy -- Responsible for the implementation of nuclear policy

33. NUCLEAR ENERGY

34. NUCLEAR ENERGY (Cont..)

35. NUCLEAR ENERGY(Cont..)

36. PROGRAMME 6 CLEAN ENERGY

37. PURPOSE OF THE BRANCHCLEAN ENERGY To manage and facilitate the development and implementation of clean and renewable energy initiatives, EEDSM initiatives as well as coordinate climate change initiatives within the energy sector. Sub-Programmes -- Energy Efficiency -- Renewable Energy -- Climate Change and Designated National Authority

38. CLEAN ENERGY

39. CLEAN ENERGY (Cont..)

40. CLEAN ENERGY (Cont..)

41. C - 2015/16 DOE Annual Performance Plan (APP)

42. PROGRAMME 2 ENERGY POLICY AND PLANNING

43. ENERGY POLICY AND PLANNINGSub-Programme 2.2: Energy Planning

44. ENERGY POLICY AND PLANNINGSub-Programme 2.3: Hydrocarbon Policy

45. ENERGY POLICY AND PLANNINGSub-Programme 2.3: Hydrocarbon Policy

46. ENERGY POLICY AND PLANNINGSub-Programme 2.3: Hydrocarbon Policy

47. ENERGY POLICY AND PLANNINGSub-Programme 2.3: Hydrocarbon Policy

48. ENERGY POLICY AND PLANNINGSub-Programme 2.4: Electricity, Energy Efficiency and Environmental Policy

49. ENERGY POLICY AND PLANNINGSub-Programme 2.4: Electricity, Energy Efficiency and Environmental Policy

50. ENERGY POLICY AND PLANNINGSub-Programme 2.4: Electricity, Energy Efficiency and Environmental Policy