12 December 2017

South Africa: Irrational IRP Madness Grips the Energy Sector in South Africa

analysis

At a media briefing on 7 December 2017 during the so-called "Energy Indaba", Energy Minister David Mahlobo announced that the long-awaited Integrated Resource Plan for electricity, IRP 2017, had been finalised and approved by the Cabinet the night before. By CHRIS YELLAND.

IRP 2017 sets the course for the technology mix, quantum and timing of new generation capacity required to meet South Africa's electricity demand forecast for the years from 2017 to 2050, and it therefore has massive economic, social and cost implications.

The Energy Indaba had been hastily arranged by the Department of Energy (DoE) and its subsidiaries, CEF and NECSA, for 7 and 8 December, shortly before the ANC elective conference scheduled from 16 to 20 December 2017.

It is thus clear that the deliberations of the Energy Indaba had no influence on IRP 2017, and cannot be considered to be any form of stakeholder or public consultative process for the IRP.

Minister Mahlobo also made it clear that there would be no further stakeholder or public consultations on the various scenarios modelled, on the electricity price trajectories of the scenarios, or any cost/benefit analyses of these scenarios.

The stated purpose of the Energy Indaba was to engage...

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