RESEARCH & DEVELOPMENT CONTRIBUTION TO POLICY DEVELOPMENT

1. RESEARCH & DEVELOPMENT CONTRIBUTION TO POLICY DEVELOPMENT Lerato Mmutlana CSIR Strategic Business & Relationship Manager: Government

2. Background • President Mbeki’s “Opening of Parliament Speech” indicated importance of energy, especially in developing areas • DACST and NACI concerned about under-investment in energy research • Implementation of energy technologies cannot take place in a policy vacuum • Formulation of policy complimented by quantitative inputs

3. DACST NRTF Energy sector mission To identify strategic research and technology topics and strategies for the energy sector in South Africa that would realize sustainable economic and social benefits for the country over the next 15-20 years NRTF overall R&T priority areas (synthesis report)

4. Global Context: Policy . Major Global Developments have changed the political and economic context against which global energy policy frameworks develop: - Worldwide concern about environmental impact of energy consumption. . In a global scale a comprehensive energy policy framework is being adopted, attention is given to: - Energy efficiency measures - Energy supply diversification - Use of renewable forms of energy - Clean energy technologies - Environmental protection - Sustainable economic growth

5. SWOT of SA energy sector • . Strengths • SA has strong natural resource base, variety of energy options • Well-developed energy, rail, road & grid infrastructure • Electrification programme delivering infrastructure & energy to disadvantaged • Benefits of economy of scale • Well developed core skills base • . Weaknesses • Limited national policy & vision for energy R&T • Industry: supply side mentality • Economy depends on polluting primary energy sources • Insufficient local energy R&D expertise • Lack of knowledge of needs & technology • Limited/low value addition to resources

6. SWOT of SA energy sector • Opportunities • Natural resources available in region for value-addition • Use energy technologies to improve quality of life • Energy efficiency improvement through value chain • Significant growth potential for renewables • Threats • High level of poverty with low growth rate • Spiral of non-payment & non-delivery may continue • Slow technological development & lack of appropriate skills • Low level of funding and lack of incentives for R&D • Lack of focus in technology development

7. The Role of CSIR in Policy Formulation

8. Purpose and goal of CSIRenergy focus To promote the development and use of energy through technological innovation. The goal is for CSIR to be a significant player in South Africa, Africa and selected international markets in innovation with regard to the development and use of energy.

9. Background for the Energy Thrust in CSIR: Consultation • Energy Initiative: - Desktop research and a SWOT analyses were undertaken to clearly define status quo. - One-on-one discussions held with SU representatives with competencies in the energy sector sector. - Workshops were held with all relevant S.Us in CSIR to determine overall expertise and competencies. - Other relevant outside stakeholders were invited to present on their energy activities including NER, DME, Eskom, etc.

10. Background for the Energy Thrust in CSIR: Consultation • DME: The Minister has expressed the need for CSIR to play an important role in providing inputs during the decision-making process and on the impact of various energy sources on the environment and during the decision-making process. • Other stakeholders and interested parties consulted include: - CSIR Board Members - ECN and TNO (Netherlands) - RISO (Denmark) - Shell - World Bank - NREL (US) - Universities/Technikons

11. Energy Thrust Research Initiatives • Areas where CSIR could add value in the Energy sector were identified: - Strategic Decision Support (e.g. policy formulation, proactive planning technologies through modelling and simulation of energy systems). - Energy efficiency - Energy and the Environment - Renewable Energy - Energy for Rural Development • New opportunities: - Gas - Energy Technology SMMEs

12. Some R & D opportunities • Simulation, modelling and forecasting: quantitative inputs to policy formulation • Value costing: The cost drivers within the value chain are quantified  • Green buildings: energy efficiency projects (housing and industrial)  Environmental impacts of different energy sources • Niche role in development of fuel cell technology

13. Some Current Multi-disciplinary Energy projects • DME: Hosting of Markal Model in CSIR for Integrated Energy Planning.  • NER: Project Co-ordiantion for hybrid mini-grid systems in Hluleka (EC).   • Eskom: Electricity Demand Forecasting. • DME/Eskom/CSIR Renewable Energy Database (DANCED funded). • Environmental Impact Assesment for gas pipeline.

14. Conclusions . Insufficient R & D funds in critical sector. . Need for R & D energy funding strategy for South Africa. . Role of Science Councils and other research institutions within this strategy. . CSIR can play a more effective role in both policy and strategy formulation.