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

Strategic Plan, APP and Budget Vote

5 May 2015

Dr Wolsey BarnardActing Director-General

PRESENTATION LAYOUT

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 (cont.)

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

A - BACKGROUND to DEPARTMENT OF ENERGY (DOE)

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BACKGROUND TO DEPARTEMENT OF ENERGY

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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 (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).

6

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.

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MACRO ORGANISATIONAL STRUCTURE OF DOE

8

Minister Deputy MinisterAssociated Institutions

Department of Energy

Office of the DG Ministerial and Parliamentary Services

Directorate Audit Services

BranchEnergy Policy,

Planning and Clean Energy

BranchPetroleum

and Petroleum Products

Regulation

BranchNuclear Energy

BranchEnergy

Programmes and Projects

BranchCorporate Services

BranchFinancial

Management Services

BranchGovernance

and Compliance

ORGANISATIONAL STRUCTURE (CONT)

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The organizational structure consists of the following seven branches:

Energy Policy, Planning & Clean EnergyPurpose: 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 RegulationPurpose: 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.

ORGANISATIONAL STRUCTURE (CONT)

10

Nuclear EnergyPurpose: 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 ServicesPurpose: To provide corporate support to the DOE.

Governance and CompliancePurpose: To ensure good corporate governance and compliance by the DOE and its SOEs; and

Financial Management ServicesPurpose: To provide financial management, accounting and supply chain management services to the DOE.

LOCATION OF DoE OFFICES

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The Department consists of a national office that is situated in Tshwane Metro (Matimba House); and Nine (9) Regional Offices that are situated in various provinces, namely:-

a) Eastern Cape (Port Elizabeth);b) Free State (Welkom);c) KwaZulu-Natal (Durban);d) Limpopo (Polokwane);e) Mpumalanga (Emalahleni); f) Northern Cape (Kimberley);g) Western Cape (Cape Town);h) Gauteng (Pretoria); andi) North West (Klerksdorp).

UPDATE ON APPROVED, FUNDED AND UNFUNDED POSTS

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• Total No of Posts on DoE’s approved establishment : 847

• Total No of Funded Posts: 620

• Total No of Unfunded Posts: 227

ENTITIES REPORTING TO THE MINISTER OF ENERGY

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Name of Public Entity MandateNational Nuclear Regulator The NNR is established in terms of the National Nuclear Regulator Act, 1999 (Act No.

47 of 1999). The act establishes the regulator as a competent authority for nuclear regulation in South Africa. The purpose of the NNR, as outlined in Section 5 of the National Nuclear Regulator Act, 1999 (Act No. 47 of 1999) is to essentially provide for the protection of persons, property & the environment against nuclear damage through the establishment of safety standards & regulatory practices.

Central Energy Fund To finance & promote the acquisition of, research into & exploitation of oil, gas & renewable/clean energy-related products & technology.

South African Nuclear Energy Corporation.

NECSA is established in terms of Section 3(1) of the Nuclear Energy Act, 1999 (Act No. 46 of 1999). The act provides for the commercialisation of nuclear & related products & services, & delegates specific responsibilities to the corporation, including the implementation & execution of national safeguards & other international obligations. The Nuclear Energy Policy of 2008 reinforced NECSA’s mandate relating to R&D & NFC responsibilities.

National Radioactive Waste Disposal Institute

NRWDI is a Nuclear Waste Disposal Institute established in terms of Section 3 of the National Radioactive Waste Disposal Institute Act, 2008 (Act No. 53 of 2008). The act provides for the establishment of an NRWDI in order to manage radioactive waste disposal on a national basis & to provide for its functions & for how it is to be managed.

National Energy Regulator of South Africa

NERSA is a regulatory authority established as a juristic person in terms of Section 3 of the National Energy Regulator Act, 2004 (Act No. 40 of 2004). NERSA’s mandate is to regulate the electricity, piped-gas & petroleum pipeline industries in terms of the Electricity Regulation Act, 2006 (Act No. 4 of 2006), Municipal Finance Management Act, 2003 (Act No. 56 of 2003), the Gas Act, 2001 (Act No. 48 of 2001) & the Petroleum Pipelines Act, 2003 (Act No. 60 of 2003).

South African National Energy Development Institute

SANEDI is an applied energy research institute established in terms of Section 7(1) of the National Energy Act, 2008 (Act No. 34 of 2008).

REVISIONS TO LEGISLATIVES AND OTHER MANDATES

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Name of the BillStrategic Focus of the

Bill

Date for Submission of

the Bill to Cabinet


the Bill to Parliament

Impact

Electricity Regulation Amendment Bill (to amend the Electricity Regulation Act, 2006 [Act No. 4 of 2006], as amended)

To provide a regulatory framework that promotes energy mix.

April 2015. March 2016. Increased investment & capacity in power generation.

Energy Regulator Amendment Bill (to amend the National Energy Regulator Act, 2004 [Act No. 40 of 2004])

To promote efficient regulation of the energy sector.

April 2015. March 2016. Promotion of administrative justice in the decisions made by the energy regulator.

Gas Amendment Bill

Introduction of an unconventional gas and LNG as well as enabling greater competition in the downstream gas market.

October 2015

October 2016

Increase diversification of Energy sources.

Electricity Industry Structure Bill

To encourage increasedinvestment in electricitygeneration to enable thecountry to meet the requiredelectricity supply capacityneeded for economic growth.

July 2015 July 2016 Increased investment in power generation.

REVISIONS TO LEGISLATIVES AND OTHER MANDATES

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Name of the BillStrategic Focus of the

Bill

Date for Submission of the Bill to

Cabinet


the Bill to Parliament

Impact

National Radioactive Waste Management Fund Bill

To ensure existence of the funding mechanism for Radioactive Waste Management

October 2015 October 2016 Provide long-term funding model /mechanism

PromulgatedNational NuclearRegulatorAmendment Act.

Review and updating existing legislation, taking into consideration the current developments.

February 2016

February 2017 It provides for efficient and effective regulatory environment

Nuclear Energy Act Amendment Bill

Review and updating existing legislation, taking into consideration the current developments

March 2016 March 2017 It provides for efficient and effective regulatory environment

Strategic Fuel Fund (SFF) Bill

Establishment of a National Petroleum reserve organisation to manage strategic stock of Petroleum and Gas

October 2015 September 2016 Enhance Petroleum and Gas security

B - 2015-2020 DOE STRATEGIC PLAN (SP)

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CHALLENGES IN ENERGY

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• 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

KEY PRIORITIES FOR DEPARTMENT OF ENERGY

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The Department has identified seven Key Priority areas to focus on in

the implementation of the Strat Plan and APP

1. Electricity supply

2. Petroleum and gas infrastructure

3. Effective & Efficient energy utilisation

4. Policy and legislation

5. SOE oversight

6. Targeted training - Department and sector SOEs

7. Communication

PROGRAMME 2

ENERGY POLICY AND PLANNING BRANCH

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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.

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Energy Policy and Planning Strategic objectives

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Strategic Objective Objective Statement Five-Year Target

SO 2.1 To Improve

Energy Security

To improve energy security by: regulating demand & introducing a

diversified mix of energy generation & EE technologies on an ongoing basis;

increasing competition in the energy sector by introducing IPPs, using renewable technologies through a bidding process on an annual basis;

planning interventions to expand energy infrastructure through the development of a policy framework for the IEP, IRP, the 20YLFIRM, GUMP, the TDP & the Major Distribution Infrastructure Plan over the medium term; &

publishing an Annual Energy Statistics Report to facilitate information-based decision making.

Annual Report on Energy

Balances provided to support

compilation of the GHG

inventory.


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SO 2.2 To Improve Liquid

Fuels Energy Security

by Developing &

Implementing the

Liquid Fuels 20-Year

Infrastructure Plan

To improve energy security by:

regulating demand & introducing a

diversified mix of energy generation

& EE technologies on an ongoing

basis;

increasing competition in the energy

sector by introducing IPPs, using

renewable technologies through a

bidding process on an annual basis;

planning interventions to expand

energy infrastructure through the

development of a policy framework

for the IEP, IRP, the 20YLFIRM,

GUMP, the TDP & the Major

Distribution Infrastructure Plan over

the medium term; &

publishing an Annual Energy

Statistics Report to facilitate

information-based decision‑making.

Liquid fuels energy security developed

& implemented & the

20YRLFMP improved (Cabinet

approval of proposals) by June 2016.

Introduce biofuels into the liquid fuels

industry through mandatory blending.

Develop a national coal policy with

regulations that will include a strategy

to secure coal supply & that aligns with

the Mining Beneficiation Action Plan by

July 2016.

The draft GUMP submitted for

Ministerial approval state inputs.

GUMP publication by May 2015.


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SO 2.3 Review Policy and Regulations to ensure security of supply

SO 2.4 Review the bulk

electrical infrastructure required for the universal access to electricity.

SO 2.5 Establish

mechanisms to prefund capital and create smooth price path over long term

SO 2.6 Ensure Security of

Supply through Additional Power Generation Capacity

To address current & envisaged energy supply & distribution constraints by developing the planned ADAM for the rehabilitation of critical municipal electricity distribution infrastructure.

The Electricity Regulation Amendment Bill & National Energy Regulator Amendment Bill introduced for consideration & support their promulgation if approved by Cabinet & Parliament.

Develop an electricity price path in line with the IRP, TDP & ADAM.

Develop a PSP Framework in the energy sector in base-load & renewable electricity generation, liquid fuels & gas within the context of Cabinet-approved policy & with an analysis of the implications for tariffs.

Develop SFF Bill, improve LPG usage, shale gas, fuel-gas, bio-mass and operation Phakisa.

Renewable energy IPP Bid Windows 1, 2, 3 & 4 of 6 725 MW of renewable energy by 31 March 2019.

Hydropower IPP based on Inga &/or Mozambique’s hydro resources launched.

Hydropower Procurement Framework completed by March 2015.

Ratification of the Inga Treaty by Cabinet by October 2014.

Energy Policy and Planning Strategic objectives (Cont..)

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SO 2.3 Review Policy and Regulations to ensure security of supply

SO 2.4 Review the bulk

electrical infrastructure required for the universal access to electricity.

SO 2.5 Establish

mechanisms to prefund capital and create smooth price path over long term

SO 2.6 Ensure Security of

Supply through Additional Power Generation Capacity

To address current & envisaged energy supply & distribution constraints by developing the planned ADAM for the rehabilitation of critical municipal electricity distribution infrastructure.

Procurement of power from Inga supported by March 2017, March 2018 & March 2019.

Review the bulk electrical infrastructure required for universal access to electricity, prepare an implementation plan & implement it (submission of implementation plan to Cabinet).

The NESMO Bill introduced for consideration & support its promulgation by March 2015.

Position paper based on stakeholder re-engagement on establishment of ISMO & the bill drafted by March 2015.

NESMO Bill introduced to Cabinet by March 2016.

Regulations emanating from the NESMO Bill drafted by March 2017.

Regulations emanating from the NESMO Bill drafted & reviewed by March 2018 & March 2019.

PROGRAMME 3

PETROLEUM AND PETROLEUM PRODUCTS REGULATION

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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

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SO 3.1 To Ensure Compliance Monitoring & Enforcement in the Petroleum Sector

To monitor & enforce technical, legal & economic compliance to legislation & its regulations in order to promote development & economic transformation of the South African liquid fuels industry.

Enforcement notices issued in 90% of cases where non-compliance is identified during routine compliance inspections (target 1 200 retail site compliance inspections conducted).

SO 3.2 To Promote the Transformation of the South African Petroleum & Liquid Fuels Industry through Issuing of Licences

To facilitate participation of HDIs in the petroleum sector by enforcing compliance by wholesalers, manufacturers & retailers with the Liquid Fuels Charter in the adjudication of licences on an ongoing basis.

45% of license applications approved have 50% BEE ownership.

SO 3.3 To Ensure Transparent Fuel Pricing of Petroleum Products

To promote a transparent fuel pricing mechanism that rewards investors in the liquid fuels sector throughout the value chain by implementing, continuous monitoring & evaluation of compliance to the RAS in order to achieve affordable petroleum products prices.

Report on the fuel prices & margin adjustments using RAS model.


PROGRAMME 4

ENERGY PROGRAMME AND PROJECTS

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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

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SO 4.1 To ensure access to electricity by households

Facilitate universal access to energy.

1 089 000 grid connections of rural households by March 2019 (75% of 1 452 000 total grid target).

78 750 non-grid connections of rural households by March 2019 (75% of 105 000 total non-grid target).

A total grid connections of 1 400 000 households by March 2019 of which 1 050 000 (75%) household will be in the rural areas.

Total non-grid connections of 115 000 households by March 2019 of which 86 250 (75%) are in the rural areas.

SO 4.2 To Enhance Programmes & Project Management

To improve project management practices across the branches.

Develop a coherent project management business process. Development of rural energy centres

SO 4.3 Monitor energy infrastructure

development

Monitoring of energy infrastructure development projects /programmes.

Quarterly progress reports on the number of successfully implemented projects.

Monitoring & reporting on the SWH quantity installed, amount of energy saved, as well as training conducted with the NSWHP, pending availability of resources.

Ensure compliance to contractual obligations.

SO 4.4 EffectiveRenewable Energy

PROGRAMME 5

NUCLEAR ENERGY

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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

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NUCLEAR ENERGY

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SO 5.1 To Improve Nuclear Security To improve the nuclear security statutory framework of South Africa by updating legislation to align with international best practices.

Promulgation of the National Nuclear Regulator Act, 1999 (Act No. 47 of 1999) amendment completed.

Promulgation of the Nuclear Energy Act, 1999 (Act No. 46 of 1999) amendment completed.

Promulgation of the Radioactive Waste Management Fund Bill completed.

SO 5.2 To Strengthen the Control of Nuclear Material & Equipment

To strengthen the control of & accounting for nuclear materials & related equipment by enforcing relevant regulations & statutory frameworks on an ongoing basis.

70% of authorisation applications processed within the 8-week time period.

40 nuclear safeguard compliance reports submitted to the relevant decision‑making structures.

20 nuclear safeguard compliance audit reports submitted to the relevant decision‑making structures.

20 nuclear security compliance reports submitted to the relevant decision‑making structures.

NUCLEAR ENERGY (Cont..)

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Strategic Objective Objective Statement Five-Year TargetSO 5.3 To Improve Security of Energy

Supply To contribute toward ensuring the

security of energy supply by leading,

developing & overseeing the

implementation of the Nuclear Energy

Expansion Programme as guided by

the Nuclear Energy Policy & the

decision of the NNEECC of October

2013, in accordance with timelines as

stipulated in the IRP 2010-2030.

Launch of procurement of the NFC facilities as per the implementation plan.

Completion of procurement of the NFC facilities as per the implementation plan.

Commencement of the construction of the NFC facilities as per the implementation plan.

Continued construction of the NFC facilities as per the implementation plan.

Launch of procurement of the nuclear power reactor as per the procurement process.

Completion of procurement of the nuclear power reactor as per the procurement process.

Commencement of the pre-construction of 1 nuclear power station.

Report on pre-construction activity progress.

NUCLEAR ENERGY(Cont..)

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Strategic Objective Objective Statement Five-Year TargetSO 5.3 To Improve Security of Energy

Supply To contribute toward ensuring the

security of energy supply by leading,

developing & overseeing the

implementation of the Nuclear Energy

Expansion Programme as guided by

the Nuclear Energy Policy & the

decision of the NNEECC of October

2013, in accordance with timelines as

stipulated in the IRP 2010-2030.

Commencement of construction (first concrete) of first new nuclear reactor.

Nuclear procurement process that will culminate in the finalisation of procurement decisions for the Nuclear New Build Programme.

SO 5.4 To Increase Nuclear Awareness

(Nuclear Legislation Framework)

Improve nuclear awareness by

ensuring compliance with international

nuclear obligations by developing,

maintaining & implementing an

appropriate statutory framework on an

ongoing basis.

31 public awareness campaigns &

community outreach events held.

PROGRAMME 6

CLEAN ENERGY

36

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

37

CLEAN ENERGY

38


SO 6.1 To Coordinate & Monitor the Implementation of Energy-Related Climate Change Response Measures & Environmental Compliance

To manage climate change & environmental compliance matters by: developing & implementing

energy-related climate change response strategies & environmental management plans; &

publishing climate change response strategies & environmental management plans.

42% (or 17 800 MW) by 2030 for renewable energy developed.

6% (or 2 600 MW) by 2030 for import of hydropower developed.

12% by 2015 (EE target for 2019 to be finalised by 2015 as outlined by the NEEAP & to be tabled for Cabinet consideration).

SO 6.2 To Coordinate & Monitor the Implementation of the EEDSM Measures across all Sectors

To promote & facilitate EEDSM by: planning & developing

interventions to increase energy savings on an ongoing basis;

developing policies to increase the impact of EEDSM strategies by 2015; &

developing and implement incentive schemes

Implement demand response and voltage power factor methodologies

Implement EE programmes, measurement verification

Develop energy consumption baselines for an additional 100 municipalities.

Develop & implement the post-2015 EE targets & strategy.

CLEAN ENERGY (Cont..)

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SO 6.3 Effective Renewable Energy To ensure the integration of renewable energy into the mainstream energy supply of South Africa by planning & coordinating initiatives & interventions focused on the development & improvement of the renewable energy market through: facilitating the incorporation of

renewable energy technologies into the IEP & other key energy policy documents;

resource mapping; establishing a conducive

environment for the growth of decentralised (renewable energy based) embedded electricity generation;

providing up-to-date data on performance & costs of renewable energy technologies as inputs to the IEP

15 MW of renewable energy deployed off-grid.

105 000 of solar home systems (PV) installed.

1 million SWHs, increased biogas uptake & use.

Deployment of solar PV rooftops.

CLEAN ENERGY (Cont..)

40


SO 6.3 Effective Renewable Energy identity further development

opportunities & providing necessary support to other renewable energy technologies that have the potential to contribute to the electricity, heat & transport sectors;

continuing support & monitoring of renewable energy initiatives & programmes that are already under way; &

implementing awareness campaigns to increase awareness of renewable energy & its benefits within the public sector & the general public.

15 MW of renewable energy deployed off-grid.

105 000 of solar home systems (PV) installed.

1 million SWHs, increased biogas uptake & use.

Deployment of solar PV rooftops.

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

41

PROGRAMME 2

ENERGY POLICY AND PLANNING

42

ENERGY POLICY AND PLANNINGSub-Programme 2.2: Energy Planning

43

Performance Indicator

Reporting Period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd 4th

Annual energy balances provided to support compilation of the GHG inventory.

Quarterly Annual energy balance (2013) published by March 2016.

Draft 2013 energy commodity flows compiled.

Internal review & approval of energy commodity flow.

Consolidation of energy commodity flow into the energy balance.

Send the final 2013 energy balance to the DG for approval via a submission.

ENERGY POLICY AND PLANNINGSub-Programme 2.3: Hydrocarbon Policy

44


Reporting Period

Annual Target2015/16

Quarterly Targets

1st 2nd 3rd 4th

Draft GUMP submitted to the Cabinet.

Quarterly Submission of GUMP & its Implementation Plan for Cabinet approval.

Development of the draft GUMP report.

Development of the draft GUMP report.

Ministerial submission for approval of the draft GUMP report & publication.

Ministerial approval of the draft GUMP for submission to Cabinet.

Draft Gas Amendment Bill submitted to Cabinet.

Quarterly Submission of the draft Gas Amendment Bill for Ministerial approval for submission to Cabinet.

Consultation of NEDLAC on the draft Gas Amendment Bill & submission of the NEDLAC report.

Consultation of NEDLAC on the draft Gas Amendment Bill & submission of the NEDLAC report.

Draft Gas Amendment Bill with incorporated comments from the stakeholder.

Submission to SLA for certification of the draft Gas Amendment Bill.

Finalised 20YRLFMP submitted to Cabinet for approval.

Quarterly Publish 20YLFIRM for external consultation.

Consultant & internal engagement on the draft 20YLFIRM report.

1. Submit draft 20YLFIRM report for Ministerial noting.

2. Draft project plan for actual 20YLFIRM.

3. Scoping to move from draft report to actual 20YLFIRM.

Submit progress report on the development of the 20YLFIRM.

Submit progress on the development of the 20YLFIRM.


45


Reporting Period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd 4th

Biofuels Regulatory Framework in place.

Quarterly Biofuels Regulatory Framework implemented.

Consolidate public comments.

Submit revised draft Position Paper on South African Biofuels Regulatory Framework for Ministerial approval.

N/A Publish Biofuels Financing Models on DoE website with Position Paper.

Announce & develop draft Operational Plan for internal consultation.

Submission of:Operational

Plan; &proposed

biofuels levy & subsidy level for public notification for Ministerial approval.

Draft Petroleum Products Bill

Quarterly Draft Petroleum Products Bill submitted for Ministerial approval

Consultation of NEDLAC on the draft Petroleum Products Bill & submission of the NEDLAC report.

Consultation of NEDLAC on the draft Petroleum Products Bill & submission of the NEDLAC report.

Draft Petroleum Products Bill with incorporated comments from the stakeholder.

Submission to SLA for certification of the draft Petroleum Products Bill.


46


Reporting Period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd 4th

Draft Petroleum Pipeline Act

Quarterly Ministerial Approval of the Concept Document for the amendment of the Petroleum Pipelines Act

Consultation of NEDLAC on the Petroleum Pipelines Act & submission of the NEDLAC report.

Consultation of NEDLAC on the Petroleum Pipelines Act & submission of the NEDLAC report.

Petroleum Pipelines Act with incorporated comments from the stakeholder.

Submission to SLA for certification of the Petroleum Pipelines Act.

Draft SFF Legislation Quarterly Ministerial Approval of the Concept Document for the SFF related legislation

Consultation of NEDLAC on the SFF related legislation & submission of the NEDLAC report.

Consultation of NEDLAC on the draft SFF related legislation & submission of the NEDLAC report.

Draft SFF related legislation with incorporated comments from the stakeholder.

Submission to SLA for certification of the SFF related legislation.


47


Reporting Period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd 4th

Draft Position Paper on Coal for Energy Policy approved.

Quarterly Draft Position Paper on Coal for Energy Policy developed (based on duly considered comments) & submitted for Ministerial approval.

Research on status on Coal for Energy Policy discussion paper.

Submission of research document on Coal for Energy Policy discussion paper.

Internal consultation of draft Coal for Energy Policy discussion paper.

Submit Coal for Energy Policy discussion paper for Ministerial approval.

Recommendation identified.

Quarterly Infrastructure needs for energy sector identified & recommendationsmade.

Consultation with Eskom & other stakeholders.

Draft document for infrastructure needs for energy sector (coal).

Internal consultation on draft document for infrastructure needs for energy sector (coal).

Document with infrastructure needs for energy sector (coal).

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

48


Reporting Period


Quarterly Targets

1st 2nd 3rd 4th

Amend National Energy Regulator Act, 2004 (Act No. 47 of 2004).

Quarterly Introduce the National Energy regulator Bill for consideration & support by Cabinet & by Parliament.

N/A Introduce the National Energy Regulator Bill for consideration & support to Cabinet & Parliament for promulgation.

N/A N/A

Amend Electricity Regulator Act, 2006 (Act No. 4 of 2006).

Quarterly Introduce the Electricity Amendment Bill for consideration & support by Cabinet & by Parliament.

N/A Introduce the National Electricity Amendment Bill for consideration & support to Cabinet & Parliament for promulgation.

N/A N/A

Review the Electricity Sector in line with Cabinet decision to strengthen SOCs

Quarterly Introduce improved electricity industry structure for consideration and support by stakeholders before introduction to Cabinet and Parliament

Review and revise draft Bill on electricity industry structure

Stakeholder engagement on draft Bill




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Reporting Period


Quarterly Targets

1st 2nd 3rd 4th

Develop & integrate the major Distribution Infrastructure Plan for the Metro Municipalities (ADAM).

Quarterly Develop Integrated Distribution Infrastructure Plan for the Metro Municipalities (ADAM).

Revised 2008 electricity ADAM report presented to the DoE for adoption.

Stakeholder engaged on the revised ADAM report.

N/A Table the revised ADAM report to Cabinet for adoption.

Quarterly Develop Norms & standards for municipal asset management in concurrence of the energy regulator

Develop Norms and Standards for municipal asset

Stakeholder consultation on the draft norms & standards for asset management targeting 8 non-metropolitan municipalities.

Submission of norms & standards to the energy regulator for approval.

Promulgation of norms & standards for municipal asset rehabilitation.

Update Electricity Pricing Policy.

Quarterly Develop the electricity price path in line with the IRP, ADAM and Transmission Plan. Obtain approval & amend the Electricity Pricing Policy accordingly for introduction to Cabinet for approval.

N/A Draft Price Path Report

Price Path presented to stakeholders for consultation

Price Path introduced to Cabinet for approval.


50


Reporting Period


Quarterly Targets

1st 2nd 3rd 4th

Update and Implement Integrated Resource Plan (IRP).

Quarterly Introduce the updated IRP for consideration & support by Cabinet and by Parliament.

Collate & synthesis stakeholder comments on draft IRP.

Conduct inter-governmental department consultation.

Incorporate as appropriate stakeholder comments & produce revised updated IRP.

Submit to Cabinet the final updated IRP for promulgation.

Introduce additional power generation capacity as per the Integrated Resource Plan (IRP)

Quarterly Introduce bidding rounds for RE, cogeneration, coal & gas programmes in line with IRP determinations made by the Minister.

Issue cogeneration RFP

Issue Gas to power RFI

Issue Gas to power RFP

Conclude Coal generation bids evaluation

Develop Southern Africa’s hydroelectric resources developed to enhance the inter-regional electricity trade

Half Yearly Negotiate PPA and resolve the Transmission solution associated with power delivery from Inga

N/A Transmission Line Route studies concluded by Eskom

Commence discussions on the PPA

N/A Submit Treaty to Cabinet and Parliament for ratification


51


Reporting Period


Quarterly Targets

1st 2nd 3rd 4th

Number of Technical War Room Reports regarding immediate - (90 Day Plan), medium (Supply Interventions) - and long-term (Demand Management) solutions

Quarterly Contributing to and Monitoring of progress on the interventions identified under the war room.

Progress report on the supply and demand interventions




PROGRAMME 3


52


Sub-Programme 3.1: Petroleum Compliance, Monitoring and Enforcement

53


Reporting Period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd 4th

Percentage of cases where enforcement notices are issued in cases where non-compliance is identified during routine compliance inspections.

Quarterly Enforcement notices issued in 90% of cases where non-compliance is identified during routine compliance inspections.

Enforcement notices issued in 90% of cases where non-compliance is identified during routine compliance inspections.




Percentage of cases where enforcement notices are issued in cases where non-compliance is identified during fuel sample testing.

Quarterly Enforcement notices issued in 95% of cases where non-compliance is identified during routine fuel sample testing.

Enforcement notices issued in 95% of cases where non-compliance is identified during routine fuel sample testing.





Sub-Programme 3.2: Petroleum Licensing and Fuel Supply

54


Reporting Period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd 4th

Percentage of licence applications approved where BEE ownership is at least 50%.

Annually 40% of licence applications approved have 50% BEE ownership.

N/A N/A N/A 40% of licence applications have 50% BEE ownership.


Sub-Programme 3.3: Fuel Price Regulation

55


Reporting Period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd 4th

Report on the implementation of the Regulatory Accounting System.

Quarterly Monitoring of RAS implementation. Report on the fuel price & margin adjustments using the RAS model.

Progress reports on RAS implementation.




PROGRAMME 4


56

ENERGY PROGRAMME AND PROJECTS Sub-Programme 4.1: Integrated National Electrification Programme

57


Reporting Period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd

4th

Plan & facilitate the transfer of funding & monitor the electrification of households in line with the allocated budget (grid connections)

Quarterly Number of additional households to be electrified with grid electrification towards the 2015/16 target of 260 000 in the National Electrification Plan.

25 000 grid households’ connections to be reported.

45 000 grid household’s’ connections to be reported.



ENERGY PROGRAMME AND PROJECTSSub-Programme 4.1: Integrated National Electrification Programme

58


Reporting Period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd

4th

Plan & facilitate the transfer of funding & monitor the building/upgrading of electrification infrastructure projects per year

Quarterly Building/upgrading of electrification infrastructure projects towards the 2015/16 target of:

• 6 new bulk substations built;

• 8 additional substations upgraded;

• 150 km new MV power lines constructed; &

• 120 km of existing MV power lines upgraded.

Provide evaluationreport against theImplementation Plan withprocurement & executionof the projects.

-- Report on 15%of each new bulksubstation built &additional substationupgrades progresson construction.-- Provide 15%progress on theconstructionof 100 km newmedium-voltagepower lines & the90 km medium voltagepower linesupgraded.

Provide constructionaudit report & 60%of progress on theconstruction of 100 kmnew medium-voltagepower lines & the 90km of existing medium voltagepower linesupgraded.

-- Report on the 4 newbulk substationsbuilt.-- Report on the6 additionalsubstationsupgraded.-- Report on the100 km newmedium-voltagepower linesconstructed.-- Report on the 90 kmof existing medium voltagepower linesupgraded.

ENERGY PROGRAMME AND PROJECTSSub-Programme 4.1: Integrated National Electrification Programme

59


Reporting Period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd 4th

Progress on the number households electrified with non‑grid electrification per year in comparison to the National Electrification Plan

Quarterly Number of additional households electrified with non-grid electrification towards the 2015/16 target of 20 000 in the National Electrification Plan.

3 500 non-grid households’ connections to be reported.




National Electrification Master Plan

Quarterly Implementation of the 2015/16 National Electrification Master Plan & refining & update the 2016/17 National Electrification Master Plan, pending the availability of resources.

Refine & update the master plan with data collected from municipalities & Eskom.

Refine & update the master plan with data collected from municipalities & Eskom.

Consolidation & confirmation of data with stakeholders (municipalities & Eskom).

Finalisation of the Master Plan document for 2016/17 the National Electrification roll out.

ENERGY PROGRAMME AND PROJECTSSub-Programme 4.2: Energy Regional Offices

60


Reporting Period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd

4th

Number of reports on progress made with regards to the energy access centres per year.

Quarterly Annual report on progress made in 2014/15 with regards to the energy access centres.

No target set for this quarter.

1 quarterly report (1st quarter) on progress made in 2014/15 with regards to the energy access centres

1 quarterly report (2nd quarter) on progress made in 2014/15 with regards to the energy access centres

1 quarterly report (3rd quarter) on progress made in 2014/15 with regards to the energy access centres

Number of reports on IEC site inspection visits on operation & management of the IEC’s

Monthly 12 site visit reports on IEC monitoring made in 2014/15 with regards to the operation of the IEC & management.

3 monthly reports (1st quarter) on the monitoring of the IEC’s operations & management made in 2014/15.

3 monthly reports (2nd quarter) on the monitoring of the IEC’s operations & management made in 2014/15.

3 monthly reports (3rd quarter) on the monitoring of the IEC’s operations & management made in 2014/15.

3 monthly reports (4th quarter) on the monitoring of the IEC’s operations & management made in 2014/15.

ENERGY PROGRAMME AND PROJECTS Sub-Programme 4.2: Energy Regional Offices


Reporting Period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd

4th

Contracts for INEP Municipalities Programme prepared & signed.

Annually Signed municipalities’ contracts for funded 2014/15 INEP programme.

N/A N/A N/A Completed signing of municipalities’ contracts for 2014/15.

Number of reports submitted to Head office.

Quarterly Provincial reports on the performance of the municipalities for 2014/15 INEP programme .

9 provincial reports prepared from the INEP Municipality Programme.

9Provincial reports prepared from the INEP Municipality Programme.

9 Provincial reports prepared from the INEP Municipality Programme.

9 Provincial reports prepared from the INEP Municipality Programme.

61

ENERGY PROGRAMME AND PROJECTSSub-Programme 4.2: Energy Regional Offices

62


Reporting Period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd

4th

Conducting site & technical audit visits during the implementation of the INEP projects.

Quarterly 4 quarterly reports on conducted site & technical audits during INEP projects implementations & monitoring of projects for 2014/15.

1 quarterly report on conducted site & technical audits during INEP projects implementations & monitoring of projects.

1 quarterly report on conducted site & technical audits during INEP projects.



4.3.1.4 Monthly projects progress reports.

Monthly 1 monthly report on projects progress.

1 monthly report on the progress of projects, including challenges & interventions.




ENERGY PROGRAMME AND PROJECTSSub-Programme 4.3: Programme and Project Management Office

63


Reporting Period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd

4th

Development of a Project Management Information System

Annually Project Management Business Process.

Stakeholder Consultation

Development of a Draft Project Business System

Submit Draft Business Process System for approval

Approved Business Process System for implementation

Development of a standard project management methodology

Quarterly Implement customising methodology based on directorates’ needs.

N/A Implement customising methodology based on directorates’ needs.

N/A N/A

Project progress update (Quarterly Projects Dashboard)

Quarterly Implement 3 dashboards

Implement 3 dashboards

Implement 3dashboards).

Implement 3dashboards

Implement 3dashboards

Monthly projects progress reports

Monthly 1 monthly report covering INEP

Monthly report on the progress of INEP




ENERGY PROGRAMME AND PROJECTSSub-Programme 4.3: Programme and Project Management Office

64


Reporting Period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd

4th

Number of solarwater heating unitsinstalled in residentialand commercial

sectors per year.

Quarterly 45 141 solarwater heatingunits installedin residentialand commercial

sectors.

Contracts for locallymanufactured productsplaced. Training and capacity building of installationteams in identified

municipalities completed.

Installationscommenced in identified

municipalities.

Installationscommenced in identified

municipalities.

45 771 solar waterheating units installed in residential and

commercial sectors.

4.4: Energy Infrastructure

65


Reporting period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd

4th

Reporting on REIPP monitoring system & compliance with the Implementation Agreement of IPPs

Quarterly An updated report highlighting achievements on the implementation of the programme.

Report highlighting achievements on the implementation of the programme.

Report highlighting achievements on the implementation of the programme.

A dashboard update highlighting the status of the IPP programme with regards to obligations & progress of the programme report, highlighting achievements on the implementation of the programme.

Develop a revised monitoring framework for the programme.

Reporting on infrastructure monitoring & compliance with the implementation of non-REIPP generation programme – peaker stations, co-generators, Coal 3, Inga, etc.

Bi-annual An Annual report

N/A A quarterly report

A a quarterly report.

An annual report


4.4: Energy Infrastructure

66


Reporting period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd

4th

Monitoring the implementation of National Solar Water Heater Programme the NSWHP

Quarterly Monitoring & reporting on the SWH quantity installed, the amount of energy saved & training conducted with the NSWHP, pending availability of resources.

N/A Report on the SWH quantity installed, the amount of energy saved & training conducted with the NSWHP, pending availability of resources.

N/A Report on the SWH quantity installed, amount of energy saved & training conducted with the NSWHP, pending availability of re- reporting on EE projects initiated by municipalities through DoRA allocations and & other entities with the amount of energy saved, as well as on the detail of EE interventions, pending availability of resources.


ENERGY PROGRAMME AND PROJECTS4.4: Energy Infrastructure

67


Reporting period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd 4th

Provide mini-ADAM projects report

Annually Provide a sustainable Electricity Distribution Intervention Plan (including the effect on tariffs) & start with the implementation to deal with the electricity infrastructure backlog in mining town municipalities, municipalities mentioned in the SoNA & the so-called hot spot areas to receive assistance.

N/A N/A N/A Provide a sustainable Electricity Distribution Intervention Plan (including the effect on tariffs) & start with the implementation to deal with the electricity infrastructure backlog in mining town municipalities, municipalities mentioned in the SoNA & the so-called hot spot areas to receive assistance.


68


Reporting period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd 4th

Monitoring the implementation of National Solar Water Heater Programme the NSWHP

Quarterly Monitoring & reporting on the SWH quantity installed, the amount of energy saved & training conducted with the NSWHP, pending availability of resources.

N/A Report on the SWH quantity installed, the amount of energy saved & training conducted with the NSWHP, pending availability of resources.

N/A Report on the SWH quantity installed, amount of energy saved & training conducted with the NSWHP, pending availability of re- reporting on EE projects initiated by municipalities through DoRA allocations and & other entities with the amount of energy saved, as well as on the detail of EE interventions, pending availability of resources.

69


Reporting period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd

4th

Monitoring the implementation of EE interventions & programmes.

Quarterly Monitoring & reporting on EE projects initiated by municipalities through DoRA allocations & other entities with the amount of energy saved & on the detail of EE interventions, pending availability of resources.

N/A Report on EE projects initiated by municipalities through DoRA allocations & other entities with the amount of energy saved & on the detail of EE interventions, pending availability of resources.

N/A Report on EE projects initiated by municipalities through DoRA allocations & other entities with the amount of energy saved & on the detail of EE interventions, pending availability of resources.


ENERGY PROGRAMME AND PROJECTS 4.4: Energy Infrastructure

70


Reporting period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd 4th

Monitoring the implementation of the biofuels programme.

Bi- annual Finalise the development of a monitoring system to oversee the production, “feed-in-subsidies” & SED implementation of the biofuels programme, pending availability of resources.

Initiate the monitoring & reporting system on the implementation of the biofuels programme.

N/A N/A N/A Finalise the development of a monitoring system to oversee the production, “feed-in-subsidies” & SED implementation of the biofuels programme, pending availability of resources.

Initiate the monitoring & reporting system on the implementation of the biofuels programme.

Number of Strategic Integrated Projects (SIPs) reports submitted to EXCO, MANCO & the Presidential Infrastructure Coordinating Commission (PICC) Secretariat on all SIPs.

Annually Provide energy inputs to all the SIPs where energy is the major component.

N/A Provide energy inputs to all the SIPs where energy is the major component.

N/A Provide energy inputs to all the SIPs where energy is the major component.

PROGRAMME 5

NUCLEAR ENERGY

71

NUCLEAR ENERGY Sub-Programme 5.1: Nuclear Safety and Technology

72


Reporting Period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd 4th

National Nuclear Disaster Management Plan updated.

Quarterly Draft updated National Nuclear Disaster Management Plan completed.

Relevant stakeholders consulted on progress regarding the implementation & response of the action plan on the emergency plan.

MoU or Corporation Agreement on the migration of RadCon from the DoH to the NNR drafted.

Commenced with an amendment of the National Nuclear Disaster Management Plan.

National Nuclear Disaster Management Plan updated.

Commission & supply an additional 9 600 MWe of nuclear energy onto the grid by 2030.

Quarterly Procurement of the nuclear power reactor as per the procurement process launched.

Implementation of the procurement process (if approved).




Develop Nuclear New build Programme Roadmap based on IRP 2010-30

Quarterly Programme Plan Completed and Implementation commenced.

Development of optimised programme plan completed in line with 2023 as per IRP 2010-30.

Optimised plan reviewed and submitted for approval.

Implementation of the optimised programme plan Commenced.

Implementation of the optimised programme plan

PROGRAMME 5: NUCLEAR ENERGY Sub-Programme 5.1: Nuclear Safety and Technology

73


Reporting Period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd 4th

Transactional Advisor appointed to provide necessary advise on the nuclear new build programme

Quarterly Transactional Advisors Motivation Completed

Draft report for Transactional Advisor motivation completed.

Include motivation report in the MTEF submission.

N/A Process of appointing for Transactional Advisor commenced.

Established Nuclear Programme Management Office (PMO) to expedite the rollout of the nuclear new build programme

Quarterly PMO established and operational.

Submission on PMO motivation submitted to Minister for approval.

Identification of human resources and nomination process completed.

The necessary human resources appointed and this include secondments from other stakeholders.

Established PMO .

Number of nuclear power reactors constructed.

Quarterly Procurement of the NFC facilities as per the implementation plan launched.

Developed implementation plan based on the mission report.

Consultation with stakeholders based on the developed implementation plan.

Incorporate inputs from stakeholders.

Implementation commenced.

PROGRAMME 5: NUCLEAR ENERGY Sub-Programme 5.2: Nuclear Non-Proliferation and

Radiation Security

74


Reporting Period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd 4th

Localisation & industrialisation strategy developed.

Quarterly Implementation of the nuclear localisation strategy (if approved).

N/A Incorporate NNEECC feedback into the NFC Strategy.

NFC Strategy implementation plan completed.

Submission to Cabinet for approval of the implementation plan to support the NFC Strategy.

Accounting & control of possession, acquisition, transportation, importation & exportation of nuclear material through consideration of 100% of authorisation applications within 8 weeks.

Quarterly 70% of authorisation applications processed within the 8-week time period.





PROGRAMME 5: NUCLEAR ENERGY Sub-Programme 5.2: Nuclear Non-Proliferation and

Radiation Security

75


Reporting Period


Quarterly Targets

1st 2nd 3rd 4th

Number of nuclear safeguard compliance reports submitted to the relevant decision‑making structures.

Quarterly 8 nuclear safeguard compliance reports submitted to the relevant decision‑making structures.





Number of nuclear safeguard compliance audit reports submitted to the relevant decision‑making structures.

Quarterly 4 nuclear safeguard compliance audits submitted to the relevant decision‑making structures.

1 nuclear safeguard compliance audit submitted to the relevant decision‑making structures.




PROGRAMME 5: NUCLEAR ENERGY Sub-Programme 5.3: Nuclear Policy

76


Reporting Period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd 4th

Number of nuclear security compliance reports submitted to the relevant decision‑making structures.

Quarterly 4 nuclear security compliance reports submitted to the relevant decision‑making structures.

1 nuclear security compliance report submitted to the relevant decision‑making structures.




Promulgated National Nuclear Regulator Amendment Act.

Quarterly Submission to Cabinet for public consultation (if approved by the FOSAD Cluster).

Draft version of the National Nuclear Regulator Amendment Act consulted with stakeholders.

Draft version of the National Nuclear Regulator Amendment Act submitted to the Chief State Law Advisor.

Feedback from Chief State Law Advisor incorporated.

Presentation to the FOSAD Cluster.

Promulgated Nuclear Energy Amendment Act.

Annually Submission to the Chief State Law Advisor & submission to Cabinet for public consultation (if approved by the FOSAD Cluster).

Submission to the Chief State Law Advisor.

N/A N/A Submission to Cabinet for public consultation (if approved by the FOSAD Cluster).

PROGRAMME 5: NUCLEAR ENERGY

Sub-Programme 5.3: Nuclear Policy

77


Reporting Period


Quarterly Targets

1st 2nd 3rd 4th

Funding provisions legislated for Radioactive Waste Management.

Annually Radioactive Waste Management Fund Bill sent to the Chief State Law Advisor & submitted to Cabinet for public comment.

N/A N/A Radioactive Waste Management Fund Bill sent to the Chief State Law Advisor & submitted to Cabinet for public comment.

N/A

Demystifying nuclear energy through the number of public awareness campaigns & the number of community outreach events per annum.

Quarterly 5 public awareness campaigns & community outreach events held.

1 community outreach event held.

1 public awareness campaign held.

1 community outreach event held.

2 public awareness campaigns held.

PROGRAMME 6

CLEAN ENERGY

78

PROGRAMME 6: CLEAN ENERGYSub-Programme 6.1: Energy Efficiency

79


Reporting Period

Annual target

2015/16

Quarterly Targets

1st 2nd 3rd 4th

Number of TWh per hour of energy savings realised from EEDSM projects.

Quarterly Planning & developing projects to achieve 0,5 TWh of energy savings per annum.

Finalisation Contractual arrangement between the Department of MunicipalitiesCommence with measurement and verification of energy savings for 2014/15 municipal interventions

Evaluation and approval of Business / implementation plans in respect of the various interventions developed by municipalities for 2015/16.Complete the measurement and verification of energy savings for 2014/15 municipal interventions

Implementation of the various 2015 /16 EE interventions commenced. Report the 2014 /15 energy savings to National Treasury and commences with the DoRA allocations for 2016/17

0.5 TWh of energy savings realised from EEDSM projects (cumulative). Confirms the 2016 /17 DoRA allocations with selected municipalities.

Number of additional municipalities for which energy consumption baselines have been developed annually.

Quarterly Developed energy consumption baselines for an additional 20 municipalities.

Stakeholder engagement process with an additional 20 target municipalities conducted.

Piloting of the baseline development approach implemented.

Stakeholder consultation on the implementation of the pilot held.

Consolidation of baseline reports & implementation lessons from 20 municipalities compiled.

PROGRAMME 6: CLEAN ENERGYSub-Programme 6.2: Renewable Energy

80


Reporting Period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd 4th

Number of SWH units installed in residential & commercial sectors per year.

Quarterly 45 141 SWH units installed in residential & commercial sectors.

Contracts for locally-manufactured products placed.

Training & capacity building of installation teams in identified municipalities completed.

Installations commenced in identified municipalities.

Installations commenced in identified municipalities.

45 141 SWH units installed in residential & commercial sectors.

Development of Renewable Energy Implementation Report

Quarterly Renewable Energy Implementation Report

Development of the Terms of Reference and appointment of a Service Provider

Inception Report on the Development of RE Implementation Report

Draft RE Implementation Report

RE Implementation Report completed

PROGRAMME 6: CLEAN ENERGYSub-Programme 6.2: Renewable Energy

81


Reporting Period

Annual Target

2015/16

Quarterly Targets

1st 2nd 3rd 4th

Draft National Biogas Strategy

Quarterly Draft National Biogas Strategy

Development and approval of the Terms of Reference for the National Biogas Strategy

Appointment of the Service Provider for the Development of the National Biogas Strategy

Inception Report & Consultation Workshops

Draft National Biogas Strategy

South Africa International Renewable Energy Conference (SAIREC) hosted

Quarterly SAIREC Conference Report

Appointment of a Service Provider for the Coordination and Management of the hosting of SAIREC

N/A SAIREC Conference Report

N/A

PROGRAMME 6: CLEAN ENERGYSub-Programme 6.3: Climate Change and Designated National Authority

82


Reporting Period

Annual target

2015/16

Quarterly Targets

1st 2nd 3rd 4th

Approved Energy and Climate Change Strategy.

Quarterly Energy and Climate Change Strategy for Public Building Sector approved.

Draft Energy and Climate Change Strategy approved and released for public consultation

Comments consolidated and Final Draft completed for approval

Energy and Climate Change Strategy approved

Energy and Climate Change Strategy Implemented.

83

D - BUDGET VOTE 26 ALLOCATIONS

Ms. Yvonne Chetty; Chief Financial Officer

84

2015 /16 BUDGET COMMENTS

• The Department’s budget allocation for 2015/16 is R7.48 billion. Earmarked transfer payments to public entities, municipalities and other implementing institutions amounts to R6.98 billion which is equivalent to 93.35% of the Department’s total budget.

• The remaining budget is R498 million or 6.65% for operational expenditure, inclusive of transfer payments in respect of retirement benefits and SETA contributions and this has been the trend of the budget for the past 5 years.

• The history of the fiscus allocations is as follows: 2010/11 - R5.648 Billion 2011/12 - R6.200 Billion (Increased by 9.7%) 2012/13 - R6.734 Billion (Increased by 8.6%) 2013/14 - R6.503 Billion (Decreased by 3%) 2014/15 - R7.415 Billion (Increased by 14%) 2015/16 - R7.482 Billion (Increased by 0.9%)

85

2015/16 BUDGET BREAKDOWN2015 ENE BUDGET SHARE

Administration 242,598 3.24%

Energy Policy and Planning 45,096 0.60%

Petroleum and Petroleum Products Regulation 74,378 0.99%

Electricity and Energy Programme Management 53,647 0.72%

Nuclear Energy 35,941 0.48%

Clean Energy 46,252 0.62%

Integrated National Electrification Programme 5,724,650 76.51%

NECSA 580,358 7.76%

NNR 21,487 0.29%

International Membership fees 16,612 0.22%

Eskom-Solar water heater project 398,315 5.32%

SANEDI 64,861 0.87%

EEDSM Municipal grant 177,899 2.38%

TOTAL 7,482,094 100.00%

86

2015 MTEF: CABINET APPROVED BUDGET REDUCTIONS IMPLEMENTED (INDICATIVE BASELINE vs FINAL BASELINE) / DOE VOTE: 26

1. Administration 255,597 242,598 -5.09% 271,973 245,552 -9.71% 287,513 258,029 -10.25%2. Energy Policy and Planning 50,261 45,096 -10.28% 53,635 46,465 -13.37% 56,835 49,004 -13.78%3. Petroleum and Petroleum products Regulation 79,767 74,378 -6.76% 83,615 76,538 -8.46% 88,531 80,666 -8.88%4. Electrification and Energy Programme & Projects 5,890,333 5,778,297 -1.90% 6,203,097 6,034,278 -2.72% 6,513,769 6,393,250 -1.85%5. Nuclear Energy 682,304 654,398 -4.09% 718,675 669,335 -6.87% 754,903 765,928 1.46%6. Clean Energy 1,030,329 687,327 -33.29% 1,053,889 622,788 -40.91% 1,106,846 787,461 -28.86%Total 7,988,591 7,482,094 -6.34% 8,384,884 7,694,956 -8.23% 8,808,397 8,334,338 -5.38%

Compensation of Employees 307,433 289,479 -5.84% 328,271 309,808 -5.62% 348,952 328,560 -5.84%Good and Services 222,566 203,116 -8.74% 234,037 188,583 -19.42% 245,741 196,154 -20.18%Transfers and Subsidies 7,453,162 6,985,492 -6.27% 7,816,854 7,192,470 -7.99% 8,207,696 7,805,297 -4.90%Payments for Capital Assets 5,430 4,007 -26.21% 5,722 4,095 -28.43% 6,008 4,327 -27.98%Total 7,988,591 7,482,094 -6.34% 8,384,884 7,694,956 -8.23% 8,808,397 8,334,338 -5.38%

Final%

ReductionProgrammes

Economic Classification

% Reduction

VOTE 26 - ENERGY2015/16 2016/17 2017/18

Indicative Final Indicative Final%

ReductionIndicative

87

BASELINE REDUCTIONS

• The 2015 MTEF Final Allocation letter, after deliberations by the MinComBud, was released by National Treasury on 21 November 2014.

• The original Indicative allocation over the MTEF period of R7.98 billion in 2015/16, R8.38 billion in 2016/17 and R8.81 billion in 2017/18 has been adjusted downward by incorporating the following reductions: Compensation of Employees - R71.8 million over the MTEF

period. Goods and Services - R102.5 million over the MTEF period. Payments for Capital Assets - R1.3 million over the MTEF

period. Transfer Payments - R1.4 billion over the MTEF period.

• The reductions brings the final baseline to R7.48 billion in 2015/16, R 7.69 billion in 2016/17 and R8.33 billion in 2017/18.

88

BASELINE REDUCTIONS

• Significant reductions have been incorporated in the Compensation of Employees, Goods and Services and Payments for Capital Assets over the MTEF period.

• The Transfer Payments reductions of R1.4 billion over the MTEF period, are as follows: INEP Eskom electrification programme reduced by R288.2

million over the MTEF period. INEP Municipalities electrification programme reduced by

R280.8 million over the MTEF period. Eskom – SWH project reduced by R962.3 million this was

initially R833 million – this additional budget cut in the SWH project, was in order to decrease Necsa’s budget reduction.

EEDSM – Municipalities reduced by R39.4 million over the MTEF period.

89

FUNDS REPRIORITIZED / ADDED TO THE VOTE The National Nuclear Regulator reduced by R13.4 million in

2015/16 and R20.1 million in 2016/17. SANEDI reduced by R24.2 million in 2015/16 and R36.3 million

in 2016/17. NECSA reduced by R26.6 million in 2015/16 and R39.9 million

2016/17.

• Funds reprioritised towards the vote amount to R50.3 million in 2015/16, R82.3 million for 2016/17 and R103.6 million in 2017/18 in the following areas, including transfers to public entities:

R51.3 million is recommended for reprioritization to NECSA over the MTEF period to cater for the decommissioning and decontamination of the past strategic nuclear facilities over the MTEF period.

R170 million is recommended for reprioritization towards INEP Non-grid to fund additional non-grid electrifications over the MTEF period. R15 million is recommended for Training and Development

from the DoE affiliated SETAs over the MTEF period.

90

REMARKS• The above mentioned reductions required a review of the DoE’s

performance targets to be aligned with the funding received.

• The Compensation of Employees reductions will impact on how the Department deals with its natural attrition over the MTEF period. A freeze on vacant positions has been recommended by National Treasury.

• Solar Water Heater project - condition placed on the project’s funding is that the Department must provide a quarterly report to the Urban Development and Infrastructure (UDI) unit of Public Finance within National Treasury by the 15th of every month indicating the progress of the Solar Water Heater project.

• In the 2014 Budget, R35 million was allocated for the Carbon Capture and Storage (CCS) research project being carried out by SANEDI in 2015/16. The Department is allowed to shift these funds towards the operational transfer to SANEDI to make additional provision for its operational costs. The Carbon Capture and Storage (CCS) funding will be reviewed by National Treasury in future budget processes.

91

Thank You!

Documents

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