Energy
From The Report: South Africa 2012
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South Africa’s energy landscape is defined by increasing demand and limited capacity as the country’s energy needs have risen rapidly in recent years. Underinvestment in infrastructure remains a key challenge for the sector. The government has in recent years sought to develop a long-term energy strategy and has launched major efforts to diversify electricity-generating capacity, reduce dependence on coal and seek alternative sources of hydrocarbons. The country is also looking at how to ensure demand- and supply-side management, as well as incorporate improved energy efficiency into its plans and the use of renewables, which are expected to account for 42% of additional generating sources, or a total of 17.8 GW, by 2030.

This chapter contains interviews with Dipuo Peters, Minister of Energy; Brian Dames, Chief Executive, Eskom; Bonang Mohale, Chairman, Shell South Africa; and David Constable, CEO, Sasol.

Articles from this Chapter

Overview

Time to shine: Strong political and economic foundations for growth
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One of West Africa’s most politically stable countries, with equally strong macroeconomic fundamentals, Ghana has a relatively high per capita GDP due in part to its sizeable gold and cocoa production, which will increase in the coming years as the country begins to pump its modest oil reserves. The economy quadrupled in size during the 2000s and a comparatively low level of risk has helped attract investors looking to establish a regional base. With a robust democracy and an established reputation for multilateral diplomacy, Ghana has also positioned itself as a champion of regional stability and integration. GEOGRAPHY: At 238,535 sq…

Overview

Renewed focus: Ensuring steady supply, improving efficiency and encouraging growth of alternative sources
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Coping with rising demand in the face of years of underinvestment in infrastructure is a key challenge for South Africa’s energy sector. With power outages dominating headlines in 2008, maintaining a stable supply of energy to industry, business and domestic consumers is crucial to the country’s future economic growth. South Africa has also moved beyond simply ensuring energy security to working towards ensuring affordable access to energy sources. IMPORTANCE OF NEW SOURCES: The country’s…

Interview

OBG talks to Dipuo Peters, Minister of Energy
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Interview:Dipuo Peters What role will coal play in the country’s future energy mix? How will the mix change over time? DIPUO PETERS: We acknowledge that our energy mix is at the moment quite fossil fuel-intensive, with more than 85% of our electricity coming from coal. But we are also very cognisant of the fact that we have one of the world’s largest reserves of coal, and that it would be wrong for us as a country to not explore and implement emerging green coal technologies to enable…

Interview

OBG talks to Brian Dames, Chief Executive, Eskom
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Interview:Brian Dames To what extent will coal retain its prominence with respect to new electricity generation projects? BRIAN DAMES: South Africa and the African continent are experiencing exciting growth prospects and ambitions which will not be met without large investments in energy capacity. To ensure a competitive economy, we need to address the critical issue of ensuring that energy is accessible, affordable and clean. Africa has long been considered the “dark continent”, with…

Analysis

Harnessing the elements: Renewables are set to provide a greater contribution to the energy mix
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Currently heavily reliant on coal-fired power stations that have contributed to the country’s ranking as the world’s 13th-largest emitter of greenhouse gases, South Africa’s energy master plan aims to significantly increase the contribution of renewables to electricity generation. From a very limited current contribution, the Integrated Resource Plan (IRP) 2010-30 aims to increase installed capacity generated by renewables to 17.8 GW by 2030. This represents 42% of additional new capacity,…

Interview

OBG talks to Bonang Mohale, Chairman, Shell South Africa
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Interview:Bonang Mohale How critical is the need to expand the extent of domestic gas production? BONANG MOHALE: Some 10m South Africans have no access to electricity, representing about 20% of the country’s population. The country has in recent years experienced power blackouts with dire consequences for the economy. South Africa is in a position where, because of the huge gap in the energy supply, it will need to invest in all types of energy sources, ranging from coal, to gas, to nuclear…

Analysis

Under pressure: Exploring the Karoo Basin’s shale gas reserves has created controversy
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Since 2009, murmurs about shale gas potential in the Karoo Basin have become a cacophony of controversy. On the one hand, international and domestic hydrocarbons firms are calling for significant exploration efforts to establish whether the expected deposits are commercially viable, suggesting that any major discoveries could be game-changers for South Africa. On the other hand are many local residents and landowners, who have instructed lawyers to block applications for exploration rights, as…

Interview

OBG talks to David Constable, Chief Executive Officer, Sasol
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Interview:David Constable Are there any components of the petroleum industry that could benefit from relaxed legislation? DAVID CONSTABLE: It is clear that the relaxation of the overall regulation in the fuel industry would result in a more market-driven regime with benefits to industry players and consumers. However, the effective deregulation of the petroleum industry would run the risk of possibly upsetting a delicate policy balance, which seeks to trade off the benefits of a market-driven…