IRP to be reviewed frequently, says DMRE

The Department of Mineral Resources and Energy (DMRE) says it has started with its work to implement the Integrated Resources Plan (IRP) 2019 from a policy and regulatory point of view.

A Section 34 determination is needed to operationalise the IRP 2019, which supports a diverse energy mix.

“We need to wait for the determination to be finalised by the National Energy Regulator of South Africa and then look at the timelines we can work from,” DMRE deputy director-general Jacob Mbele, told the Africa Energy Indaba on Tuesday.

The IRP 2019 provides for additional capacity of 2 000 MW of emergency power, 1 500 MW from coal, 2 500 MW from hydropower, 6 000 MW from photovoltaic, 14 400 MW from wind, 2 088 MW from energy storage and 3 000 MW from gas.

Mbele said the IRP would need to be reviewed frequently.

“We must review the plan frequently so that assumptions that underpin the plan are not out significantly.”

He said the energy sector was changing, with new industries likely to develop.

“The idea is not to make the energy sector rigid. It must be adaptable to change.”

Investors said they were looking forward to the roll-out of the plan. 

“The renewables will be easier, because it has been done for many years. The gas, the coal and the storage will be more difficult but the investor community will work around the documents,” said Hulisani CEO Marubini Raphulu.

Investors were also upbeat about the recent announcement that energy could be sourced directly from independent power producers in a bid to stem the energy crisis. 

“The risk appetite is there and the financiers are keen to see another source of decision-making because procurement projects by government can take time. We like the fact that there is another source of purchasing,” said Jonathan Berman who heads Autonomi Capital.

Industry experts, project developers, financiers, energy users, government officials and manufacturers have been meeting at the Africa Energy Indaba to discuss the current and future energy landscape on the continent.