what’s happening with the feed-in tariff?

Submitted by sproutingforth on Mon, 2008-12-01 10:57

pic: Thomas RocheWe sent out a special action alert email on 11 November highlighting the need to support a renewable energy policy change in the form of a feed-in tariff – read the story here. e-REACT, the group of parliamentarians behind the lobby group chaired by Dr Ruth Rabinowitz, presented a private members bill for discussion in parliament on 19 November.

It appears that both Eskom the DME (department of minerals and energy) were opposed to the feed in tariff and incentive bill, calling it unnecessary because it is already covered in existing energy policy legislation (no surprises there!). The private members bill did not go to parliament for endorsement the next day as hoped.

However, a resolution was taken that the Speaker should set up a special ad hoc committee to deal with matters raised in the bill (this is due to eREACT’s strong feeling that parliament, not NERSA and the DME, should be the custodian of the process, giving it greater transparency and public participation). If the issues raised are dealt with soon enough by DME and the National Energy Regulator (NERSA), then there is no need for the bill. If they are not dealt with soon enough, then parliament will adopt legislation specifically covering renewable energy feed in tariffs before the parliament ends its life. In the meantime, eREACT will continue to lobby for progress. The official press release is below:

Press statement released by:
Dr Ruth Rabinowitz MP

Date: 19 November 2008

Subject: Refit bill endorsed by private members’ committee

“Team Renewable Energy and the e-Parliament Renewable Energy Activists (e-REACT) took a leap in the right direction today with the endorsement by the Private Members Committee of the Renewable Energy Feed-In Tariff and Incentives Bill, sponsored by Dr Ruth Rabinowitz IFP MP.”

“Although the Department of Minerals and Energy, as well as Eskom stood alone as the only entities that felt that the Bill was not necessary, the Committee Members needed no persuading to endorse the concept of the Bill.”

“South Africa, as the twelfth largest carbon polluter in the world, needs to respond urgently to global warming and to reduce our dependency on Eskom power. If Parliament owns this REFIT and Incentives Bill, it will be implemented transparently, with greater certainty and with greater depth of public participation than if the Feed-In Tariff is implemented by existing laws.”

“Our working together as Members from all Parties has inspired and galvanised the public from whom we’ve received amazing support, be it from academics, businesses, NGO’s or individuals.”

“With a realistic REFIT in place we could reach a renewable energy target of 15% by 2020. At current energy usage this would save 350 million tons of carbon being pumped into the atmosphere and earn South Africa approximately 70 billion Euros in carbon credits. It would help keep the earth’s carbon levels below the critical 450 parts per million.”

“The economics also makes sense in that while Eskom sets its current costs of electricity at 26c per Kw/hr this entails hidden costs. The price would escalate to approximately 65c per Kw/hr from new power stations. Already Eskom offers to pay independent power producers R1.05 to R1.20 per Kw/hr and pays close to R4 per Kw/hr to generate dirty back-up power from open cycle gas turbines. The estimated price of wind to the consumer is 85c per Kw/hr and of concentrated solar thermal power, R1.20 per Kw/hr. These figures diluted into Eskom’s 40 Giga Watts of installed capacity would dilute down to approximately 0.1c increase per Kw/hr in the cost of electricity.”

“The Chairperson proposed that a special Ad-Hoc Committee be appointed by the Speaker to urgently address the matters raised in the Bill.”

I believe that all members of parliament would like to be able to claim that they did everything in their power to leave a healthy planet for their descendants. Rather like a rugby team, we will keep passing the ball until we cross the line and see this legislation implemented.”

For further information contact:
Dr Ruth Rabinowitz MP

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