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Renewable Energy and SA GHG Emission Reduction System

Renewable Energy and SA GHG Emission Reduction System. Portfolio Committee 25 October 2016. Background. In 2015, Cabinet approved South Africa ’ s climate change mitigation system framework. The system includes the following key elements: A carbon budget for each company;

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Renewable Energy and SA GHG Emission Reduction System

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  1. Renewable Energy and SA GHG Emission Reduction System Portfolio Committee 25 October 2016

  2. Background • In 2015, Cabinet approved South Africa’s climate change mitigation system framework. The system includes the following key elements: • A carbon budget for each company; • Desired emissions reduction outcomes for key economic sectors • Pollution prevention plans by companies with carbon budgets; • A reporting system, to gather information on the actual emissions of users; • A variety of other measures to be applied to support and/or complement the carbon budget system including a carbon tax. • The system was introduced in phases. • Phase one (2016-2020) will be voluntary as there is no legal basis to set emission limits for sectors or companies. • Phase 2 (post-2020 period) will only become mandatory when climate change response legislation is in place.

  3. WHAT IS THE SA GHG EMISSION REDUCTION SYSTEM? • An organized structure that consists of interrelated and interdependent elements that are critical for the country’s greenhouse gas emission reduction • These elements directly and indirectly influence one another to maintain the existence of the system, and will include a range of measures as contemplated in the National Climate Change Response White Paper (NCCRWP), aimed at achieving the overall national goal

  4. FRAMEWORK WAS APPROVED BY CABINET IN 2015 Phase 1 2016 to 2020 AQA Provisions

  5. Phase 2 Beyond 2020 Climate Change Act

  6. Key Mitigation Sectors

  7. Summary of mitigation potential for the RE energy measures and installed capacity required

  8. EMISSION REDUCTION SYSTEM PHASE 1 • Phase 1 carbon budget design document consulted with business. • Carbon budgets finalised for 18 companies • Pollution Prevention Plan Regulations to be promulgated soon • Interface of carbon tax and carbon budgets: Carbon Budget companies gets 5% tax allowance in the current Carbon Tax design

  9. EMISSION REDUCTION SYSTEM FOR THE SECOND AND SUBSEQUENT PHASES • Key issue: phase 2 of GHG mitigation system requires a legal basis. • Key elements below: • Step 1: GHG Inventory • Step 2: Mitigation Potential Analysis • Step 3: Policies and Measures • Step 4: National emissions trajectory • Step 5: Desired Emission Reduction Outcomes • Step 6: Carbon Budgets • Step 7: Mitigation Plans • Step 8: Monitoring and Evaluation

  10. Mitigation Potential Analysis 3 BUR National Com BUR STEP 2 Mitigation Potential Analysis 2 Mitigation Potential Analysis 4 National Emissions Trajectory 3 Policies and Measures 3 STEP 4 National Emissions Trajectory National Emissions Trajectory 4 Policies and Measures 2 INDC Submission 2 DEROs 3 INDC Submission 3 Carbon Budgets 3 STEP 1 GHG Inventory 2000 – 2012 GHG Inventory Management System - GHG Emissions Reporting System (via NAEIS) DEROs 4 STEP 5 DEROs 2 Web-based M&E System 2 Web-based M&E System Update 3 GHG Inventory 2000 - 2019 Carbon Budgets 4 Global stocktaking STEP 6 Carbon Budgets 2019 2020 2016 2017 2018 2026 2021 2023 2022 2025 2024 2029 2030 2027 2028 STEP 8 Web-Based M&E 1 Compliance Review of DEROs, Carbon budgets STEP 9 Compliance Review of DEROs, Carbon budgets STEP 7 Mitigation Plans 2 Review of LEDs Policies and Measures 4 STEP 3 Policies and Measures Assessment 1 Mitigation Plans 3 BUR Mitigation Plans 4 GHG Inventory 2000 - 2025 GHG Inventory 2000 - 2017 National Com BUR GHG Inventory 2000 - 2015 GHG Inventory 2000 - 2027 GHG Inventory 2000 - 2023 • International commitments • 2009 Pledge Assessment • LEDs • National Com • BUR GHG Inventory 2000 - 2021 BUR Note: red boxes not necessarily part of the system. They represent international commitments Mitigation System Elements

  11. Renewable Energy Developments • South Africa has significant solar and wind resources • Renewable energy technology costs have dropped dramatically and this presents an opportunity for the scale up of solar and wind technologies • RE implementation - REIPPPP since 2011: • 8.1 GW of RE allocated for procurement in all bid windows • Approx 2.5GW operational • 2014: PV and wind production -1% of electricity supply • 2015: PV and wind production – 2% of electricity supply • First half of 2016: PV and wind – 2.2% electricity supply

  12. Summary of the REIPPP programme in terms of Ministerial Determinations (as of 31 March 2016)

  13. Summary of the REIPPP programme in terms of Ministerial Determinations (as of 31 March 2016) cont…

  14. CSIR Analysis of REIPPPP tariffs

  15. Emission reduction from the REIPPPP • Energy produced and supplied to the grid- 5 003 GWh • Emission reduction realised from the programme - , 8.4 Mton CO2 equivalent

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