Green Connection - Southern African FAITH COMMUNITIES ENVIRONMENT INSTITUTE Liziwe McDaid

SAFCEI upholds the core principles of the Earth Charter, including: Respect and care for the community of life Ecological integrity Social and economic justice Democracy, non-violence and peace

Southern African Faith Communities Environment Institute

SAFCEI SUMMIT 2008 Energy and Climate Change resolution : We also recognise the need for urgency to reduce greenhouse gases. We, people of faith, recognise that we have a responsibility to care for the planet and all life on it as well as caring for our fellow human beings. We furthermore recognise that this responsibility includes leaving a healthy planet for future generations so that they are not robbed of their inheritance.

Call on Government, ESKOM and NERSA (National Energy Regulator of South Africa) to ensure that electricity tariffs include ‘cradle to grave’ external environmental and social costs. A stepped tariff must be implemented so that the poor are not further burdened by increasing electricity tariffs. Renewable, locally generated electricity provides the opportunity for access to affordable electricity for all. Energy and Climate Change resolution :

What is Eskom trying to do? Encourage increasing electricity use Subsidise coal industry Stick to what they know Industry prioritised Promote wise energy efficiency Provide energy security Join in modern trends Developmental /societal needs

Annual investment in New Renewable Energy

Expected trends in average costs of electricity G. Morris, AGAMA Energy 2008

Jobs for Africa

Developmental approach REFIT implemented Bursaries for RE RE projects back on Real cost comparison Stepped tariffs Tariffs applied to ALL customers

Digging a hole

Hidden costs of wrong choices: Coal mining Water infrastructure Transport Health R7 bill – grootgeluk mine R1.3 bn dam for water for mine and R3 bn pipeline R 10 bn for rail transport for coal Our major concern is that information on procurement and involvement of our people remains insufficient for them to take advantage of these opportunities taking place right in their backyards.

National Environmental Management Act (c) Environmental justice must be pursued so that adverse environmental impacts shall not be distributed in such a manner as to unfairly discriminate against any person, particularly vulnerable and disadvantaged (p) The costs of remedying pollution, environmental degradation and consequent adverse health effects and of preventing, controlling or minimising further pollution, environmental damage or adverse health effects must be paid for by those responsible for harming the environment (

No Choice: Maintenance of Koeberg Maintenance of base load coal power stations Road/rail maintenance Buy coal

Don’t do: “Considering that electricity generation utilises approximately 50% of the country’s coal production, the continued operation of Eskom is an integral aspect of ensuring sustainability of the coal mining and related industries. “Eskom We are being asked to subsidise the coal industry!

Stop the waste Industry Commercial Residential Agriculture Transport Savings Sustainable Energy Africa, 2007

Energy Poverty Richest 20% use 62.2 % Poorest 20% use 3.5% Energy burden for the poor equivalent to household income of R spending R4 000 on electricity.

Good intentions….. “The tariff regime should reflect the true economic costs of electricity, including the cost of increasingly scarce primary energy and the cost of shifting to cleaner and renewable electricity generation technologies”. ESKOM 2009

Way Forward Reduce energy demand in short term Create space for renewable energy investment Implement the feed-in tariff as a matter of urgency NO price increases until Eskom can show that the path they are proposing fulfils the environmental and social obligations Implement stepped tariff Implement 100 kWh free basic electricity Board of inquiry to avoid same mistakes Independent Consultative process to assess Eskom’s strategy

JOBS USA: Coal mining = Transport = Power generation = Wind 2008 = Solar prediction in 2 years = WE NEED A JUST TRANSITION

Production Costs Source: Banks D and Schäffler J (2006)

Our competitive advantage 6500MW 4000MW 3500MW 6000MW

Way Forward Appeal to NERSA: EMPOWER SOUTH AFRICANS ENSURE ESKOM BECOMES A SERVICE PROVIDER