Green Connection - www.thegreenconnection.org.za

Southern African

FAITH COMMUNITIES ENVIRONMENT

INSTITUTELiziwe McDaid

SAFCEI upholds the core principles of the Earth Charter, including:

• Respect and care for the community of life• Ecological integrity• Social and economic justice• Democracy, non-violence and peace

Southern African Faith Communities Environment Institute

SAFCEI SUMMIT 2008

Energy and Climate Change resolution:

We also recognise the need for urgency to reduce greenhouse gases.

We, people of faith, recognise that we have a responsibility to care for the planet and all life on it as well as caring for our fellow human beings.

We furthermore recognise that this responsibility includes leaving a healthy planet for future generations so that they are not robbed of their inheritance.

Call on Government, ESKOM and NERSA (National Energy Regulator of South Africa) to ensure that electricity tariffs include ‘cradle to grave’ external environmental and social costs.

A stepped tariff must be implemented so that the poor are not further burdened by increasing electricity tariffs.

Renewable, locally generated electricity provides the opportunity for access to affordable electricity for all.

Energy and Climate Change resolution:

What is Eskom trying to do?

• Encourage increasing electricity use

• Subsidise coal industry

• Stick to what they know

• Industry prioritised

• Promote wise energy efficiency

• Provide energy security

• Join in modern trends

• Developmental /societal needs

Annual investment in New Renewable Energy 1995-2007

Expected trends in average costs of electricity

•

0

10

20

30

40

50

60

70

80

90

100

2008 2009 2010 2011 2012 2013

Years

Ave

. ret

ail e

lect

rici

ty p

rice

(c/

kWh

)

Large-scale w ind pow er

Existing mix - expectedescalation 15%

Existing mix - steeperescalation 20%

G. Morris, AGAMA Energy 2008

Jobs for Africa

80 130700 952

1341

6545

8733

Developmental approach

• REFIT implemented• Bursaries for RE• RE projects back on• Real cost comparison• Stepped tariffs• Tariffs applied to ALL

customers

Digging a hole

Hidden costs of wrong choices:

• Coal mining

• Water infrastructure

• Transport

• Health

R7 bill – grootgeluk mine

R1.3 bn dam for water for mine and R3 bn pipeline

R 10 bn for rail transport for coal

Our major concern is that information on procurement and involvement of our people remains insufficient for them to take advantage of these opportunities taking place right in their backyards.

National Environmental Management Act

• (c) Environmental justice must be pursued so that adverse environmental impacts shall not be distributed in such a manner as to unfairly discriminate against any person, particularly vulnerable and disadvantaged

• (p)  The costs of remedying pollution, environmental degradation and consequent adverse health effects and of preventing, controlling or minimising further pollution, environmental damage or adverse health effects must be paid for by those responsible for harming the environment

• (

No Choice:

• Maintenance of Koeberg

• Maintenance of base load coal power stations

• Road/rail maintenance• Buy coal

Don’t do:

• “Considering that electricity generation utilises approximately 50% of the country’s coal production, the continued operation of Eskom is an integral aspect of ensuring sustainability of the coal mining and related industries. “Eskom 2009.

• We are being asked to subsidise the coal industry!

Stop the waste

IndustryCommercial

Residential

Agriculture

Transport

Savings

Sustainable Energy Africa, 2007

Energy Poverty

• Richest 20% use 62.2 %

• Poorest 20% use 3.5%

Energy burden for the poor equivalent to household income of R20 000 spending R4 000 on electricity.

Good intentions…..

• “The tariff regime should reflect the true economic costs of electricity, including the cost of increasingly scarce primary energy and the cost of shifting to cleaner and renewable electricity generation technologies”. ESKOM 2009

Way Forward

• Reduce energy demand in short term• Create space for renewable energy investment• Implement the feed-in tariff as a matter of urgency• NO price increases until Eskom can show that the path

they are proposing fulfils the environmental and social obligations

• Implement stepped tariff• Implement 100 kWh free basic electricity• Board of inquiry to avoid same mistakes

• Independent Consultative process to assess Eskom’s strategy

Our competitive advantage

6500MW

4000MW

3500MW

6000MW

6000MW

6000MW

Way Forward

Appeal to NERSA:• EMPOWER SOUTH AFRICANS• ENSURE ESKOM BECOMES A SERVICE

PROVIDER