Energy transition moving, delays be damned, says project unit

The Presidency’s Just Energy Transition (Jet) Project Management Unit (PMU) maintains that despite the continued use of coal power plants and delays in renewable energy projects, South Africa remains focused on greening its energy sector in line with multilateral commitments.

Asked by reporters during a virtual media session about the urgency of energy sector reforms, head of the project management office in the Presidency Rudi Dicks said South Africa needed affordable ways to expand the transmission network after the breaking up of Eskom into three entities.

“In an ideal world I think you’re right. You could want to fast track it. You literally need about in excess of about 1,500km a year to be able to meet the 14,000km requirement for high-voltage transmission cables.

“The idea would be to try to find different mechanisms of implementing that and I think cabinet has made a decision that it’s going to be quite important to think about how we partner with the private sector in different forms of private sector participation in expanding and growing the transmission network,” he said.

The virtual session brought into keen focus South Africa’s commitments to decarbonise its economy and industries in line with its commitments to the annual Congress of Parties meetings on climate change.

The unit acknowledged load-shedding and power supply challenges complicated the targets for South Africa. Eskom senior management has also had to admit decommissioning the Komati power station in Mpumalanga without planning renewable job and skill initiatives sooner was a “mistake”.

Head of the Jet PMU Joanne Yawitch said critical issues informed implementation of South Africa’s just energy transition, including policy reforms, Eskom's financial relief needs, the electricity supply crisis and other broad fiscal constraints.

She said the unit was working with Eskom and development finance institutions to build a plan to help government better plan the transition from coal energy. She said just energy transition funding should become operational expeditiously.

“We are working on an accelerated coal transition investment plan and that investment plan goes to the Climate Investment Funds Board in October. It looks at community development, repowering, repurposing and decommissioning at the appropriate time,” she said.

Yawitch said transition-aligned projects needed co-ordination around capital mobilisation, planning and problem solving, capacity building and knowledge and monitoring. Implementation gaps include barriers in locating quality policy and regulations among others, she said.

“We want to see the Jet funding platform operational. We are going to identify units and portfolio secretariats for the core portfolios we are going to work with. We are setting up a portfolio management unit,” she said.

Yawitch said Eskom remains committed to putting decommissioning plans for coal power stations together and progress would be made in this regard by October so a programme for finance can be deployed.

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