The Department of Mineral Resources and Energy plans to launch the procurement of an additional 11 800 megawatts of power from renewable energy, natural gas, battery storage and coal after it has concluded purchase agreements between Eskom and successful bidders for 2 000 megawatts under the Risk Mitigated Independent Power Producer Programme.
This was said by Minister Gwede Mantashe, who was leading the department’s delegation appearing before the Portfolio Committee on Mineral Resources and Energy on Tuesday to present its annual performance plan for the 2021/22 financial year and budget estimates over the three-year Medium-term Expenditure Framework (MTEF).
However, committee member Mr James Lorimer said that a lack of money may result in the department failing to procure the additional power as planned.
Mr Mantashe said that the department will in addition issue a request for proposals in order to gauge the market’s appetite in the field of gas, coal and battery storage.
The department has tabled a proposed budget of R29.82 billion over the MTEF period, in which R24.81 billion will be spent on subsidies and transfers to the 18 state-owned companies reporting to the department. They are grouped into four categories, namely mining and energy, regulation, research, and health and safety. In the category mining and energy are the Central Energy Fund, PetroSA, the Strategic Fuel Fund, the African Exploration Mining and Finance Corporation, the South African Gas Development Company, State Diamond Trader and Pelchem.
The National Energy Regulator of South Africa, the South African Diamond and Precious Metals Regulator, the South African Nuclear Regulator and Petroleum Agency of South Africa fall into the regulator category. Mine Health and Safety Council, as well as the National Radioactive Waste Disposal Institute, make up the health and safety category. While in the research category are Mintek, Council for Geoscience, NTP Radioisotapes, South African National Energy Development Institute and the South African Nuclear Energy Corporation.
The committee will listen to presentations on the annual performance plans and budget estimates from all state-owned companies reporting to the department before it can deliberate and adopt a comprehensive report. The department’s final budget will be debated by the National Assembly and passed under vote 34.
Justice Molafo
5 May 2021
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