RES Southern Africa Duncan Ayling Head of Development Wednesday 9 th November RES Southern Africa comments on the National Climate Change Response White Paper

2 RES is one of the world's leading renewable energy developers Development, construction and operation of wind farms for 25+ years Solar, Biomass, Wind, and building-integrated renewables Over 5000MW of wind energy capacity developed 1000s MW under construction and in development An independent power producer ‐ we own and operate approximately 600MW RES Group Introduction

RES Group Worldwide 33 UK & IRELAND HQ – Kings Langley Bristol Devon Gateshead Northern Ireland Scotland Wales FRANCE Avignon Lyon Paris Bordeaux SWEDEN Gothenburg TURKEY Istanbul USA Austin, Texas Broomfield, Colorado Minneapolis, Minnesota Portland, Oregon CANADA Montreal AUSTRALIA Sydney SOUTHERN AFRICA Cape Town RES Southern Africa Registered South African company Cape Town office since 2009 Currently supported by RES UK Plans to expand and employ South Africans

44 We welcome the Government’s acknowledgement of its share to global climate change and its awareness of the urgency to act. We agree with the Government’s recognition of the Polluter Pays Principle - effective measurement and monitoring important We agree with the Government policy to develop a ‘win-win’ strategic approach that develops the economy alongside combating climate change. To this end, the success of the renewables industry would be crucial. Comments on the Climate Change Response White Paper We welcome the Government recognition that revenue generated by carbon taxation should be allowed to support climate change policy, including any incentive on renewable energy development

55 Timeline too long – We recommend a quicker deadline of one year, and a timeline for each mitigation and adaptation measurement and approach to be finalised. As a result, related industries can monitor their development and audit if progress has been conducted on time. Definition of ‘significantly emitting sector’ – For the energy sector, such definition should be based on measures such as tons of CO2 emitted per MWh of electricity generated Assumption of net economic negative impact is unfounded - The social and environment benefit of acting urgently outweighs the limited short term negative impact on some sectors that require radical change Comments on the Climate Change Response White Paper

66 Economy and jobs can benefit through Climate Change Policy: 8.3 The Renewable Energy Flagship Programme - ‘The Programme will be enhanced by domestic manufacturing potential…’ Domestic manufacturing potential requires strong and sustainable domestic incentive, without which the manufacturing potential, technology transfer and job creations would only be realised elsewhere in the world. Climate Change Policy needs to support RE industry growth

IRP 2010 Revised Balanced Cumulative Wind/RE Scenario May/ may not be enough to bring manufacturing to SA Climate Change Policy needs to support RE industry growth

Medium term certainty required to create jobs ??? Climate Change Policy needs to support RE industry growth

SAWEA “25% renewable energy (20% wind) by 2025” Equivalent to 80 TWh, or 30,000 MW of wind energy installed Job creation: Either remove or increase the MW ‘cap’ Climate Change Policy needs to support RE industry growth

10 Request to Government 1.To announce that the RE IPP Programme RFP of Aug 2011 will be followed by an RFP2 with: a.an increased MW allocation (or the removal thereof) and b.a timeline for procurement. and 2.To announce that subsequent additional RFP’s will follow, showing the Government’s commitment to the IRP2010 This is essential for a continuous build out of renewables. Climate Change Policy needs to support RE industry growth

11 Duncan Ayling RES Southern Africa Head of Development