2. DEPARTMENT OF ENERGY ENERGY PORTFOLIO COMMITTEE PRESENTATION ON THE 2011/12 MTEF STRATEGIC PLAN Ms N Magubane Director General

3. Structure of the Presentation I ntroduction DoE performance against the 2010 SONA What informed our 2011/12 MTEF strategy Analysis of the 2011/ 12 SONA DoE and government outcomes Outcomes based strategic planning process Situational analysis and the energy space/environment Organisational environment Department strategic objectives Policy development and reviews for 2011/12 Conclusion Branch presentations on focus areas

4. Performance of DOE on SONA 2010 Objectives Contribution to successful hosting of the 2010 FIFA World Cup- Electricity and Fuel Supply Electrification of Households to effect Service Delivery - 93 941 connections as at February 2011 ISMO – Framework for IPP participation. Draft Bill to be tabled in Cabinet by end of the financial year.

5. Performance Highlights - 2010 Completed Regulatory Accounting System Promulgated LPG Price Regulations Published the fuel specification & standard discussion paper Developed Regulations for strategic stocks to be maintained by oil companies Published the standard offer incentive scheme Completed the Integrated Resource Plan Established SANEDI

6. What informed our 2011/12 MTEF strategic plan 2011 State of the Nation Address Government outcomes Government’s Outcomes Based Strategic Planning approach Situational analysis – energy space Our organizational environment Inter- cluster activities Examination of past experience

7. Analysis of the 2011 SONA Emphasis on the need to Create Jobs Focus on Energy Efficiency Emphasis on renewable energy- procurement of power from Renewable Energy Power Producers Service Delivery with Electrification Focus Rural Development Need to work together with Private and Public Sector institutions SADC, AU, IBSA and BRICSA and Role of Energy Building Prosperity through Service Delivery

8. DoE and Government outcomes Approach has been to broaden our focus and response beyond outcomes in the signed delivery agreements by the Minister. Minister signed the following delivery agreements Outcome 4: Decent employment through inclusive economic growth Outcome 6: An efficient, competitive and responsive economic infrastructure network Outcome 8: Sustainable human settlement and improved quality of household life Outcome 10: Environmental assets and natural resources that are well protected and continually enhanced

9. Outcomes based strategic planning Department has adopted this approach a year earlier. Approach focuses on the impact of our service delivery to the community/end recipient Emphasis on outcomes oriented monitoring and evaluation approach that is led by the President Further aligns strategic planning and the budgeting cycle

10. Outcome based strategic planning(Cont) Covers a 5 year planning period vs the 3 year planning previous implemented. Overall management of performance information Strategic plan reflects broad strategic outcomes of government

11. Situational Analysis and the energy environment Service delivery environment Challenges of declining electricity generation capacity Need to fast track interventions that will improve the power supply-demand situation Government target of achieving 92% distribution penetration in accessing the electricity distribution grid by 2014 Stability of the electricity distribution infrastructure – and its financial impact

12. Situational Analysis and the energy environment Service delivery environment Growing demand on energy resources as the economy comes out of the recent economic crisis. Constraints on the supply of liquid fuels especially to the economic hub of the inland market. Impact of job losses and the urgent need to implement programmes that are labour intensive Fast tracking the introduction of clean energy in the energy mix Hosting of COP 17

13. SELECTIVE LIST OF PARTNERSHIPS IN THE ENERGY SECTOR IN SOUTH AFRICA Bi-laterals Norway, Sweden, Switzerland, China, USA, Russia, Angola, BRIC Major Economies Forum Sustainable Energy : Climate Change Forums, UN, CSLF,CEM, IRENA, etc Multilaterals BRICSA,EU, AU, G20, IBSA, SADC, IEF, IEA IAEA, APPA Funding & Technology: China, EU, France, USA, Norway, World Bank & Private & Sovereign Funds etc Energy sector International Partners Oil & Gas : Mozambique, Saudi Arabia, Namibia, Nigeria, Angola, Egypt, E.G, Brazil, Venezuela etc Electricity: SADC APPA Nuclear: France, USA China, Russia, S Korea, IAEA, AFCONE etc Skills & Capacity: China, Japan, IEA, IAEA etc

14. ORGANISATIONAL ENVIRONMENT Organisational/Performance Environment As we start the 2011/12 financial year, DoE will continue to operate at 65% human capacity within the interim structure Gradual migration to the approved full structure during the MTEF starting mid 2011/12 Appointment of two DDGs in line function early in the year and the implementation of the four line function branches

15. Department’s Strategic Objectives 1.Enabling environment for secure energy supply is in place. Energy supply is secure for now and demand is well managed. 2.An efficient, competitive and responsible energy infrastructure network 3.Improved energy regulation and competition 4.Efficient and diverse energy mix for universal access within a transformed energy sector 5.Environmental assets and natural resources protected and continually enhanced by cleaner energy technologies 6.Mitigation against, and adaptation to, the impact of climate change 7.Good corporate governance for effective and efficient service delivery

16. Policy development and reviews 2011/12 Review and amend the following legislations: National Energy Regulator Act, No. 4 of 2006 – improve the governance structure of NERSA Electricity Regulator Act, No 4 of 2006 – provide for expropriation, improve licensing and address penalties Petroleum Products Act, No. 120 of 1997 – to address regulatory gaps Gas Act, No. 48 2001 – to include methane and gasses from other sources Introduce the ISMO Bill – to facilitate the introduction of IPPs in the electricity generation sector

17. BRANCH PRESENTATIONS Hydrocarbons and Energy Planning Electricity, Nuclear and Clean Energy Corporate Services Office of the CFO Office of the COO 16

18. PROGRAMME 2 HYDROCARBONS & ENERGY PLANNING Mr. T. B Maqubela

19. Objectives Integrated Energy planning to promote the sustainable use of energy resources by developing appropriate policies and regulations that promote the efficient use of petroleum products, coal, gas and renewable sources.

20. PROGRAMME FOCUS AREAS Integrated Energy Planning Strategy – outlines the requisite processes, systems and structures for the development of the IEP. Cabinet approved IEPS Operational energy modelling system Public stakeholder workshop New Fuel specifications & standards- improve the quality of transport fuels to reduce harmful emissions and to align with international vehicle technology trends Discussion Paper has been published for comments. Regulations will be promulgated during the first quarter on 2011/2012 National LPG Strategy-expand the use of LPG for thermal application in the household sector. Submit the Strategy to Cabinet during 1 st quarter of 2011/12 Revise maximum refinery gate price of LPG and the retail price to make LPG more affordable

21. PROGRAMME FOCUS AREAS (cont) National Strategic Fuels Stock Policy– set out the framework for the storage of fuels stocks by both government and oil companies. The Policy will be submitted to Cabinet during the 2011/12 financial year. Finalise the implementation Plan with National Treasury during the financial year Regulatory Accounting System- determine margins for each activity throughout the value chain Installation, testing and commissioning of the RAS 20 year Liquid fuels infrastructure Roadmap- Biofuels pricing Framework- development of a framework to guide the implementation of the biofuels strategy to expand the biofuels market Finalisation of the pricing framework during the 1 st quarter of 2011/12

22. PROGRAMME FOCUS AREAS (cont) Integrated Energy Centres-provide access to energy services to the rural communities Involve more oil companies in the development of the IECs. Two IECs to be operationalised during the financial year Liquid Fuels Charter- Review progress on the implementation of the LFC since its inception Finalise the audit and review of the LFC Regulatory Accounting System- determine margins for each activity throughout the value chain Installation, testing and commissioning of the RAS 20 year Liquid fuels infrastructure Roadmap- determine the required distribution infrastructure through out the value chain and identify future refining capacity. Finalise the Roadmap by the 2 nd Quarter of the financial year

23. CHALLENGES Failure to secure access of primary energy feedstock for liquid fuels Insufficient funding

24. PROGRAMME 3 Electricity, Nuclear & Clean Energy Mr. O. Aphane

25. Monitor developments in the electricity, nuclear and clean energy sectors. Improve and implement appropriate policies governing these sectors. Promote universal access to electricity by the broader South African population. OBJECTIVE

26. PROGRAMMES Solar Water Heating Integrated National Electrification Programme Integrated Resource Planning Independent System Market Operator Independent Power Producers Refit Energy Efficiency Campaign and Awareness Nuclear Safeguards Nuclear Transaction

27. Solar Water Heating Programme 250 041 Solar Water Heaters installed by March 2012 EEDSM Allocation – 18 000 units Rebate Programme, Private and Commercial Sector will fund the balance Integrated National Electrification Programme – Universal Access to Electricity 170 000 households connections by March 2012 through Municipalities and Eskom 10 000 connections through the Non-Grid programme PROGRAMME FOCUS AREA

28. Regulations for New Generation Capacity Standard Set for Procurement Documentation Request for Quotations launched for the Procurement of Power from IPPs Power Purchase Agreements signed Medium Term Risk Mitigation Plan (MTRMP) Implementation and monitoring of initiatives to balance supply-demand

29. Energy Efficiency and Demand Side Management 1 TWh combined savings from EEDSM Awareness campaigns Implementation of Energy Efficiency initiatives and verification of savings Approach to Distribution Assets Management (ADAM) Mapping of distribution assets for six metros and identification of problem areas Approval of funding plan by Cabinet PROGRAMME FOCUS AREA

30. Approach to Distribution Assets Management (ADAM) Mapping of distribution assets for six metros and identification of problem areas Approval of funding plan by Cabinet REFIT Launch of the Procurement Plan Evaluate RFQs Conclude Agreements with IPPs IRP and ISMO IRP2010 approved by Cabinet ISMO bill approved for submission to Parliament PROGRAMME FOCUS AREA

31. Nuclear Safeguards Investigation on the removal of state system of accounting and control from Necsa Regulatory function currently discharged by Operator Nuclear Transactions Obtain Cabinet approval of the phased decision making approach Formation of Cabinet level coordination committee PROGRAMME FOCUS AREA

32. CHALLENGES Human Resources Financial Constraints

33. PROGRAMME 1 Corporate Services Mr. G. Mnguni

34. Presentation Outline 1.INTRODUCTION 2.ORGANISATIONAL ENVIRONMENT 2.1DEPRTMENT OF ENERGY 2.2CORPORATE SEVICES 3.PERFORMACE OUTCOME & OUTPUTS OF CORP SERVICES: 3.1KEY OUTCOME:GOOD CORPORATE GOVERNANCE FOR EFFECTIVE AND EFFICIENT SERVICE DELIVERY 3.2PERFORMANCE OUTPUTS:  Provision of effective and efficient human resource services to the department;  Provision of effective and efficient auxiliary services to the department;  Provision of effective and efficient communication services to the department; and  Effective and efficient legal services provided to the department. 4.CONCLUSION 33

35. 34 Minister of Energy Department of Energy Director-General Branch: Hydrocarbons and Energy Planning Chief Directorate: Hydrocarbons Chief Directorate: Integrated Energy Planning Chief Directorate: Petroleum Licensing and Monitoring Branch: Electricity, Nuclear and Clean Energy Chief Directorate: Electricity Chief Directorate: Nuclear Chief Directorate: Integrated National Electrification Programme Chief Directorate: Clean Energy Branch: Corporate Services Chief Directorate: Human Resources and Auxiliary Support Services Chief Directorate: Communication and Knowledge Management Directorate: Legal Services Branch: Chief Financial Officer Chief Directorate: Information Management Directorate: Expenditure Management Directorate: Financial Planning and Management Accounting Directorate: Supply Chain Management Branch: Chief Operations Officer Chief Directorate: Monitoring, Evaluation and SOE Oversight Chief Directorate: Strategy and Risk Management Chief Directorate: International Coordination Deputy Minister of Energy APPROVED INTERIM STRUCTURE OF DOE

36. 35 Minister of Energy Department of Energy Director-General Branch: Policy Development Chief Directorate: Electricity Policy Chief Directorate: Electricity Supply Chief Directorate: Hydrocarbons Policy Chief Directorate: Nuclear Policy Branch: Energy Operational Services Chief Directorate: Hydrocarbons Operations Chief Directorate: Petroleum Licensing and Monitoring Chief Directorate : Integrated National Electrification Programme Chief Directorate: Clean Energy Branch: Nuclear Energy Chief Directorate: Nuclear Safety and Technology Chief Directorate: Nuclear Non- Proliferation and Radiation Security Branch: Integrated Energy Planning Chief Directorate : Energy Planning Chief Directorate: Energy Economics Branch: Corporate Services Chief Directorate: Human Resources and Auxiliary Support Services Chief Directorate : Communication and Knowledge Management Directorate: Legal Services Branch: Chief Financial Officer Chief Directorate: Information Management Directorate : Expenditure Management Directorate: Financial Planning and Management Accounting Directorate : Supply Chain Management Branch: Chief Operations Officer Chief Directorate: Monitoring, Evaluation &SOE Oversight Chief Directorate: Strategy & Risk Management Chief Directorate: International Coordination Deputy Minister of Energy APPROVED ORGANISATIONAL STRCTURE OF DOE

37. PERFOMANCE OUTPUT: Provision of effective and efficient human resource services to the department KEY ACTIVITYOUPUT INDICATOR Finalise and implement an Integrated HR Plan for DOE  DOE Organisational structure is aligned with Strategy;  The Employment Equity Plan of DOE is correctly implemented;  HR policies, processes and procedures are developed and implemented;  The identified Occupational categories for DOE are developed and implemented;  The HRD Strategy is implemented; 36

38. PERFOMANCE OUTPUT: Provision of effective and efficient human resource services to the department KEY ACTIVITYOUPUT INDICATOR Finalise and implement an Integrated HR Plan for DOE  Workplace Skills plan developed and implemented;  Filling of all funded vacancies finalised;  PMDS implemented and finalised;  The Public Service Health and Wellness Framework is implemented; and  Good employer and employee relations are maintained. 37

39. PERFOMANCE OUTPUT: Provision of effective and efficient auxiliary services to the department KEY ACTIVITYOUPUT INDICATOR Provision of safe and secure working environment for DOE  A Security Risk Management plan for DOE is finalised and implemented;  The procurement of alternative office accommodation and relocation of DOE is finalised;  The DOE Contingency Plan is implemented;  All Auxilliary Services of DOE, policies, procedures and contracts are reviewed and implemented; and  Office facilities for DOE Regional offices are provided. 38

40. PERFOMANCE OUTPUT: Provision of effective and efficient communication services to the department KEY ACTIVITYOUPUT INDICATOR Finalise and implement DOE Communication strategy and plan  DOE Communication strategy and plan aligned with National Strategy;  DOE Communication plan implemented in line with approved Strategy;  The effectiveness of DoE Communication Strategy is conducted;  Stakeholder satisfaction survey is conducted;  All logged calls on the Presidential hotline resolved within the given timeframes; and  Energy departmental building and regional offices fully branded. 39

41. PERFOMANCE OUTPUT: Effective and efficient legal services provided to the department KEY ACTIVITYOUPUT INDICATOR Provide legal advice to the Ministry and the department  Draft, edit and finalise legislation to be administered by the DoE;  Draft, edit and vet International Agreements in terms of Chapter 5 of the Manual on Executive Acts of 2006;  Contracts are vetted and amended as required;  Legal opinions are compiled and provided timeously;  Appeals lodged i.t.o legislation administered by DoE are handled;  A ll litigation against the Dept is managed and action instituted where necessary; and  The implementation of PAJA and PAIA processes are properly managed. 40

42. Office of the Chief Financial Officer Ms Y. Chetty

43. Branch: Financial Information and Supply Chain Management 2

44. Directorate: Expenditure Management 43

45. Directorate: Financial Planning & Management Accounting 44

46. Directorate: Supply Chain Management 45

47. Directorate: Supply Chain Management (Continue……) 46

48. Directorate: Supply Chain Management (Continue……) 47

49. Directorate: Information Technology 48

50. 2010/11 BUDGET OVERVIEW BUDGET OVERVIEW 2010/11 – CURRENT FINANCIAL YEAR DETAILSBudget Actual spend 28/02/2011 Actual % on budget spendAvailable Rands MillionR'000 % Administration 127.5 101.179.3% 26.4 Hydrocarbons and Energy Planning 1,564.7 1,179.175.4% 385.6 Electricity, Nuclear and Clean Energy 436.7 322.773.9% 114.0 Associated services 3,519.8 3,360.995.5% 158.9 Total Budget - 2010/11 5,648.7 4,963.887.9% 684.9

51. 2010/11 BUDGET OVERVIEW BUDGET OVERVIEW 2010/11 - Major spending areas DETAILSBudget Actual spend 28/02/2011 Actual % on budget spend Rands MillionR'000 % Transfers and subsidies 5,389.7 4,757.988.3% Compensation of Employees 143.3 129.290.2% Goods and Services 110.7 72.465.4% Payments for capital assets 5.0 2.652.0% Totals major spending areas 5,648.7 4,962.187.8%

52. 2010/11 BUDGET OVERVIEW Budget available at 28 February 2011 684.9 Projected spending for March 2011 Compensation of employees 13 Goods and Services 38.2 Transfer payments 493 NNR 2 Eskom (INEP) 30 Transnet 375 Working for Energy 20 Municipalities - EDSM 65 Payments for capital assets 2 Projected balance as at 31 March 2011138.7 Balance inclusive of Non-grid electrification (R118 million) and the renewable energy subsidy scheme (R20.7 million)

53. 2011 ENE ALLOCATED FUNDS PROGRAMMES 2009/102010/112011/122012/132013/14 Actual Revised EstimateMedium term estimates Rand MillionR'000 Programmes Administration 98.2 125.7 167.5 149.9 151.5 Energy Policy and Planning 76.5 1,548.6 1,547.0 1,546.2 77.9 Energy Regulation 385.1 488.4 554.7 145.4 184.2 National Electrification Programme 2,522.1 2,884.5 3,207.6 3,139.0 3,312.0 Nuclear Energy and Regulation 608.9 601.4 613.2 594.9 579.2 Total for programmes 3,690.8 5,648.76,089.9 5,575.3 4,304.8

54. ENE ALLOCATED FUNDS PER ECONOMIC CLASSIFICATION ECONOMIC CLASSIFICATION 2009/102010/112011/122012/132013/14 Actual Revised EstimateMedium term estimates Rand MillionR'000 ITEMS Current Payments 251.4 254.1 297.2 275.4 348.9 Transfers and Subsidies 3,432.5 5,389.7 5,784.9 5,294.8 3,951.0 Payments of capital assets 6.8 4.9 7.8 5.1 4.9 Total for items 3,690.9 5,648.7 6,089.9 5,575.3 4,304.8

55. 2011 ENE ALLOCATIONS Total allocation for DoE for 2011/12 is R6.09 billion Major projects / programmes funded:  Integrated National Electrification Programme – R3.208 billion  National Energy Efficiency and Demand Side Management – R398.8 million  Transnet (National multi-products pipeline) – R1.5 billion  Renewable Energy Subsidy Scheme – R41.3 million

56. ENE – Current Payments Current Payments2009/102010/112011/122012/132013/14 Actual Revised EstimateMedium Term Estimate Rand MillionR'000 Compensation of Employees 133.3 147.9 181.7 192.4 218.3 Goods and Services 118.1 106.2 115.5 83.0 130.6 Total Current payments 251.4 254.1 297.2 275.4 348.9

57. ENE – Current Payments

58. Costing of DOE establishment structure PROGRAMMES2011/12 Funding Rand MillionR'000Posts Administration 81.7222 Energy Policy and Planning 30.465 Energy Regulation 47.2128 National Electrification Programme 15.035 Nuclear Energy and Regulation 7.513 Total for programmes 181.7463

59. Programme 1: Administration ECONOMIC CLASSIFICATION 2009/102010/112011/122012/132013/14 Actual Revised EstimateMedium term estimates Rand millionR'000 Compensation of Employees38.751.881.786.784 Goods and Services 53.1 68.7 77.6 57.8 62.2 Transfers and Subsidies 0.1 0.3 0.4 Payments of capital assets 6.0 4.8 7.8 5.1 4.9 Payments for financial assets 0.2 - - - - Total for items 98.2 125.7 167.5 149.9 151.5

60. Programme 1: Administration

61. Programme 2: Energy Policy and Planning ECONOMIC CLASSIFICATION 2009/102010/112011/122012/132013/14 Actual Revised EstimateMedium term estimates Rand millionR'000 Compensation of Employees26.138.430.432.644.6 Goods and Services 49.6 10.3 16.6 13.6 33.3 Transfers and Subsidies - 1,500.0 - Payments of capital assets 0.8 - - - - Payments for financial assets- - - - - Total for items 76.5 1,548.6 1,547.0 1,546.2 77.9

62. Programme 2: Energy Policy and Planning

63. Programme 3: Energy Regulation ECONOMIC CLASSIFICATION 2009/102010/112011/122012/132013/14 Actual Revised EstimateMedium term estimates Rand millionR'000 Compensation of Employees44.940.247.249.664.6 Goods and Services 13.0 17.1 10.5 5.3 25.1 Transfers and Subsidies 327.2 431.2 497.0 90.5 94.5 Payments of capital assets - - - - - Total for items 385.1 488.5 554.7 145.4 184.2

64. Programme 3: Energy Regulation

65. Programme 4: National Electrification Programme ECONOMIC CLASSIFICATION 2009/102010/112011/122012/132013/14 Actual Revised EstimateMedium term estimates Rands MillionR'000 Compensation of Employees 3 13 15 16 15 Goods and Services 2 7 5 3 5 Transfers and Subsidies 2,517 2,864 3,187 3,120 3,291 Payments of capital assets - - - - - Total for items 2,522 2,885 3,208 3,139 3,312

66. Programme 4: National Electrification Programme

67. Programme 5: Nuclear Energy and Regulation ECONOMIC CLASSIFICATION 2009/102010/112011/122012/132013/14 Actual Revised EstimateMedium term estimates Rands MillionR'000 Compensation of Employees 20.5 4.5 7.5 7.8 9.9 Goods and Services 0.5 2.8 5.5 3.0 4.6 Transfers and Subsidies 587.9 594.1 600.3 584.1 564.7 Payments of capital assets - - - - - Total for items 608.9 601.4 613.2 594.9 579.2

68. Programme 5: Nuclear Energy and Regulation

69. Transfers and Subsidies TRANSFERS AND SUBSIDIES 2009/102010/112011/122012/132013/14 ActualRevised EstimateMedium term estimates Rand MillionR'000 Local Government (DORA) 1,075 1,240 1,377 1,151 1,215 INEP 900 1,020 1,097 1,151 1,215 EDSM 175 220 280 - - Projects / Programmes 1,698 3,494 3,776 3,536 2,149 EDSM - Eskom 75 109 119 - - INEP - Eskom 1,616 1,720 1,738 1,882 1,986 Transnet Multi-purpose pipeline - 1,500 - Renewable Energy Subsidy Scheme 6 21 41 68 72 Working for Energy Project - 20 25 - - INEP - Non-grid electrification 1 124 71 86 91 FIFA World Cup - - 282 - - Households 0 0 0 0 0 Leave gratuities 0 0 0 0 0 Entities reporting to Minister 659 655 632 606 586 SANEDI - - 20 22 EDIH 72 62 12 - - NNR 23 19 14 11 10 NECSA 564 574 586 573 554 Total for programmes 3,432 5,389 5,785 5,2933,950

70. Office of the Chief Operating Officer Ms T. Zungu

71. STRUCTURE OF THE PRESENTATION Introduction Key focus areas for 2011/12 Strategy and Risk management Monitoring and Evaluation SOE oversight International Co-ordination Special Programmes and Outreach Projects

72. OFFICE OF THE CHIEF OPERATING OFFICER CHIEF OPERATING OFFICER STRATEGY AND RISK MANA GEMENT MONITORING AND EVALUATION) SOE OVERSIGHT INTERNATIONAL COORDINATION EXECUTIVE AND PERSONNAL SPECIAL PROGRAMMES AND OUTREACH PROJECTS Slide 71

73. KEY FOCUS AREAS – 2011/12 Strategy and Risk Management Full implementation of government’s new outcome based planning approach – timeframes, alignments, delivery agreements, budget cycle, etc Implementation of the department’s Risk Management and Fraud Prevention Plan Monitoring and Evaluation Implementation of the department’s outcomes oriented monitoring and evaluation system led by the Presidency (conduct risk assessment, training of risk champions, etc)

74. KEY FOCUS AREAS – 2011/12 (cont) State Owned Entities Oversight Winding up and de-registration of EDI Holdings early 2011 CEF group of companies – restructuring Grouping of oil and gas business under one entity – SFF, iGas under PetroSA PASA – stand alone entity reporting to the Minister of Energy AEMFC – stand alone entity, moved to Dept of Mineral Resources SANERI – process completed. Will start operating as a stand alone entity 1 April 2011 Legislation

75. KEY FOCUS AREAS – 2011/12 (cont) State Owned Entities Oversight (cont) Establishing of the National Radioactive Waste Disposal Institution Review legislation Nersa Act NNR Act CEF Act

76. KEY FOCUS AREAS – 2011/12 (cont) International Co-ordination Currently RSA is a net importer of both crude oil and gas and hence will always be targeting cooperation with countries that could enhance the security of supply of crude oil and gas. RSA demand for energy is set to increase and the DOE needs to facilitate investment in the sector through international funding, access to technology, information, skills and partnership with international players Clean energy is a mandate and a demonstration of RSA taking position of a responsible citizen to reduce the carbon foot print.

77. KEY FOCUS AREAS – 2011/12 (cont) International co-ordination (cont) Clean energy technologies are available from developed countries and RSA has to work with such countries and multilateral organization to meet this need. RSA is often the voice of Africa at international forums and therefore needs to take an active role. Hosting of COP 17 by organizing energy side events with international partners.

78. KEY FOCUS AREAS – 2011/12 (cont) International co-ordination (cont) To facilitate development of and access to electricity in SADC and Africa at large Attraction of International Private Power Producers to participation in electricity generation sector in RSA Cooperation in upstream oil and gas sectors in third part countries especial in Africa and South America to ensure access to oil and gas Maintaining relations with countries currently supplying gas to RSA- Mozambique Gas Commission

79. The role in SADC and Africa In SADC Strengthen relations with SADC countries that are increasingly discovering hydrocarbons DoE support to development of Regulatory Capacity for Petroleum Pricing Strengthen Energy Secretariat Facilitate investment in infrastructure project to secure power needs for RSA and religion In Africa Strengthen multilateral Energy initiatives around climate change, peaceful uses of nuclear energy and Energy dialogue between oil producing and consuming nations

80. KEY FOCUS AREAS – 2011/12 (cont) Special Programmes and Outreach Projects Special Programmes Represent the department at multilateral engagements; Participate in intergovernmental special programmes (women, youth, children and people with disabilities); Mainstream gender within the energy sector; Coordinate the work of energy sector groups (WINSA, WOESA, SYNPS and Youth in Energy); Monitor and evaluate special programmes.

81. KEY FOCUS AREAS – 2011/12 (cont) Special Programmes and Outreach Projects Outreach Projects Identify and implement rural development energy projects; Initiate projects aimed at poverty alleviation; Create various community committees in order for government, labour and the energy sector to exchange ideas on training and development of vulnerable groups; Coordinate information sessions on career opportunities within the energy sector and mandate of the department.

82. 81 Thank you