Media Alert: PCC Submission on the SAREM

CLIMATE COMMISSION CALLS FOR INTEGRATION AND TRANSFORMATION IN RENEWABLE ENERGY LANDSCAPE IN ITS SUBMISSION ON THE SOUTH AFRICAN RENEWABLE ENERGY MASTER PLAN (SAREM)

The Presidential Climate Commission today submitted its detailed response and submission to the Department of Mineral Resources and Energy (DMRE) on the South African National Renewable Energy Master Plan (SAREM).

In the context of securing the country’s energy needs while transitioning to a net-zero carbon economy, the PCC welcomes SAREM as a catalytic contribution to our country’s transition to a net-zero carbon future and a baseline for implementation of essential projects and programmes.

The PCC supports SAREM’s vision of industrialising the renewable energy value chain to enable inclusive participation in the energy transition. The PCC reiterates that the Just Transition Framework as adopted by Cabinet remains the country’s overarching policy to inform, amongst others, the Just Energy Transition, and SAREM should be viewed as complementary, consistent and enabling of one another.

In summary the PCC in its submission highlights the following aspects

The PCC considers the four pillars (creating sustained demand; driving industrial development; fostering inclusive development; and building skills and capacity) to be the correct building blocks for the strategy.

Indicators and targets

The indicators do not fully encompass the ambitious aims and actions plans contained throughout the SAREM. The SAREM should contain early-stage indicators to know whether the country is on course towards the end goals.

Fostering demand for RE and storage technologies

The mainstay of SAREM should be consistent market demand of 6 to 8 GW new capacity per annum through regular REIPPPP rounds and other public procurement (public works & industrial parks). The PCC supports proposals for upgrading the grid to accommodate new generation capacity; addressing regulatory issues (such as registration and licensing, wheeling, trading and a power exchange); and tracking this through quarterly updates on the pipeline of projects.

Fostering and driving inclusive industrial development

The PCC concurs that the rapid roll-out of renewable energy (wind and solar) and battery storage, with the accompanying BOP (balance of plant) programme provides significant opportunities for localisation.

The PCC supports the aims of SAREM to grow investment, local content and employment in the renewable energy value chain and build the in-country skills to achieve this. The interventions to foster inclusive development are supported, with the development of the Broad Based Black Economic Empowerment (BBBEE) sector specific scorecard for the renewable energy and storage sector. There should be harmonisation of transformation requirements between REIPPP and embedded generation projects through an industry charter that promotes participation by black-owned businesses, young people, and women, and incubating and building the capacity of emerging suppliers.

Localisation must be in terms of an industrial strategy that advocates a thorough-going industrial transformation for the long term.

Building capabilities

Scaling up the renewable and battery storage sector (and those sectors proposed for inclusion) requires a new generation of technical and managerial skills specific to the rapidly evolving technologies. The SAREM should further outline specific intervention on scaling up training provided in existing TVET colleges, in partnership with the private sector.

Integration and alignment

The SAREM needs to focus more on how the plan could be mainstreamed into the plans of other government departments and identify related synergies. This will also significantly improve the performance of the state, broaden the scope for employment opportunities and economic impact.

We further submit that the SAREM should explore alignment with international opportunities and developments notably the SADC integrated trade strategy, targeting the acquisition of new minerals supported by the African Renewable Energy Manufacturing Initiative as well BRICS as partnership for collaboration to secure trade, investment interests in the climate transition.

The PCC thanks the DMRE for the opportunity to provide its comments on SAREM and for the extension of the comment period. However, even with the extension, the PCC does not consider the tight deadline for comments on the Master Plan to be sufficient for meaningful public consultation and calls upon the DMRE and all social partners to endeavour for increased inclusivity, partnership, and cooperation in the implementation of the SAREM.

A full submission of the Presidential Climate Commission to the Department of Mineral Resources and Energy is available for download below

Issued by Presidential Climate Commission
For all post media interviews please contact: Blessing Manale, Head of Communications and Outreach blessing@climatecomission.org.za +27 73 036 5381.