Duncan Ayling Head of Development Wednesday 9th November 2011 RES Southern Africa Duncan Ayling Head of Development Wednesday 9th November 2011 RES Southern Africa comments on the National Climate Change Response White Paper

RES Group Introduction www.res-ltd.com RES is one of the world's leading renewable energy developers Development, construction and operation of wind farms for 25+ years Solar, Biomass, Wind, and building-integrated renewables Over 5000MW of wind energy capacity developed 1000s MW under construction and in development An independent power producer ‐ we own and operate approximately 600MW Our core activity is the development, construction and operation of wind farms RES has been at the forefront of the wind energy industry for more than 25 years. Active in large‐scale Solar, Biomass, Wind, and building-integrated renewables.

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Comments on the Climate Change Response White Paper We welcome the Government’s acknowledgement of its share to global climate change and its awareness of the urgency to act. We agree with the Government’s recognition of the Polluter Pays Principle - effective measurement and monitoring important We agree with the Government policy to develop a ‘win-win’ strategic approach that develops the economy alongside combating climate change. To this end, the success of the renewables industry would be crucial. We welcome the Government recognition that revenue generated by carbon taxation should be allowed to support climate change policy, including any incentive on renewable energy development 4

Comments on the Climate Change Response White Paper Timeline too long – We recommend a quicker deadline of one year, and a timeline for each mitigation and adaptation measurement and approach to be finalised. As a result, related industries can monitor their development and audit if progress has been conducted on time. Definition of ‘significantly emitting sector’ – For the energy sector, such definition should be based on measures such as tons of CO2 emitted per MWh of electricity generated Assumption of net economic negative impact is unfounded - The social and environment benefit of acting urgently outweighs the limited short term negative impact on some sectors that require radical change 5

Climate Change Policy needs to support RE industry growth Economy and jobs can benefit through Climate Change Policy: 8.3 The Renewable Energy Flagship Programme - ‘The Programme will be enhanced by domestic manufacturing potential…’ Domestic manufacturing potential requires strong and sustainable domestic incentive, without which the manufacturing potential, technology transfer and job creations would only be realised elsewhere in the world. 6

IRP 2010 Revised Balanced Cumulative Wind/RE Scenario Climate Change Policy needs to support RE industry growth IRP 2010 Revised Balanced Cumulative Wind/RE Scenario IRP Revised balanced scenario may not be enough to bring manufacturing to SA. Wind growth uncertainty after 2019 Need manufacturing to maximise jobs May/ may not be enough to bring manufacturing to SA

? ? ? Medium term certainty required to create jobs Climate Change Policy needs to support RE industry growth IRP Revised balanced scenario may not be enough to bring manufacturing to SA. Wind growth uncertainty after 2019 Need manufacturing to maximise jobs ? ? ? Medium term certainty required to create jobs

Job creation: Either remove or increase the MW ‘cap’ Climate Change Policy needs to support RE industry growth SAWEA “25% renewable energy (20% wind) by 2025” Equivalent to 80 TWh, or 30,000 MW of wind energy installed The wind industry say we can do better. IRP revised balanced scenario in purple. The red is what we believe that we can do on top of this scenario if we are allowed to Remove or increase the CAP on MW and jobs will be created Job creation: Either remove or increase the MW ‘cap’

This is essential for a continuous build out of renewables. Climate Change Policy needs to support RE industry growth Request to Government To announce that the RE IPP Programme RFP of Aug 2011 will be followed by an RFP2 with: an increased MW allocation (or the removal thereof) and a timeline for procurement. and To announce that subsequent additional RFP’s will follow, showing the Government’s commitment to the IRP2010 This is essential for a continuous build out of renewables. 10

Duncan Ayling RES Southern Africa Head of Development www.res-sa.com