Madam Deputy Speaker, according to information at my disposal, the response to hon Van der Merwe is that the amount is R794 021 313. Thank you.
Madam Deputy Speaker, thank you to the hon Minister for the answer. It is almost R800 million. Could the hon Minister kindly tell us what percentage that is of the total amount that was spent that year?
Madam Deputy Speaker, that's a good question. I'm prepared to return to the hon member later on. I cannot provide that information right now. Thank you.
Thank you very much, hon Deputy Speaker. Hon Minister, what is the meaning of settlement in terms of the Department of Rural Development and Land Reform, and how many agreements have been signed with landowners and fully paid? There are about 1 652 outstanding claims, which must be settled in KwaZulu-Natal, and the budget for 2009-10 is almost exhausted. Therefore, where will the department get the money to settle all outstanding claims? Thank you.
Hon Deputy Speaker, we are on record as having said in this House that the budget for this financial year to settle restitution has been exhausted. In fact, it was exhausted during the first quarter. We did report that until we got another allocation, we would be unable to settle any other claims. Thank you, hon Deputy Speaker.
Thank you, Deputy Speaker. Hon Minister, I was also going to say that since the budget is inadequate, how do we see these outstanding claims being settled and when will we see them being settled? What are the current challenges that are being discussed by Cabinet at the moment? Are we seeing any kind of light at the end of this tunnel? Thank you.
Hon Deputy Speaker, we have been able to look at our own budget in the department with a view to settling some of the claims which have been processed and signed. We are working on that, and we will report to this House as to how much we have done. With regard to how broadly we will deal with the matter, we will deal with the matter progressively as we get allocations through the budget, because that is the only way and the only source of funding that we can rely upon. Thank you, Deputy Speaker.
Sihlalo, Ngqongqoshe ohloniphekile, ngicela ukubuza ukuthi kule mali eyasetshenziselwa ukubuyiselwa kwemihlaba kubanikazi bawo. Ngabe yimalini eyathenga umhlaba? Yimalini eyanxephezela umphakathi, endaweni yokuthola umhlaba Kanye naleyo eyakhishwa njengo xhasomali ukuze isize labo abafuna ukulima? Nokho siyazi ukuthi uyabiza umhlaba kodwa babewuthathe mahhala. Siyambonga ke uhulumeni ohholwa yiANC, uKhongolose, ngokusiza abantu bakithi babuyelwe ngumhlaba wabo awathathwa nguhulumeni wengcindezelo. Sibonile eBabanangu KwaZulu-Natal ukuthi abantu bakithi bawutholile umhlaba. Mhlonishwa ngicela usichazele ukuthi ungakanana umhlaba KwaZulu-Natal ongakabuyiselwa kubanikazi bawo? [Ihlombe.] (Translation of isiZulu paragraphs follows.)
[Ms P P XABA: Chairperson, hon Minister, if I may ask: What happened to the money that was used for land restitutions? How much was spent on purchasing land? How much was spent to compensate the community who did not get land, as well as that which was paid out as a subsidy in order to help those who want to farm?
Nevertheless, we know that the land is expensive but they took it free of charge. We thank the ANC-led government, the congress, for assisting our people to get back their land which was taken by the apartheid government. We have seen in Babanango, in KwaZulu-Natal, that the land has been returned to our people. Hon Minister, will you please explain to us how big the land in KZN is that has not been returned to its rightful owners? [Applause.]]
UMPHATHISWA WEZOPHUHLISO LWAMAPHANDLE NOBUYEKEZO LWEZEMIHLABA: Sekela- Somlomo ohloniphekileyo, ndicela imvume kule Ndlu ihloniphekileyo nakwilungu elihloniphekileyo ukuba khe ndinikwe ithuba lokuya kucwangcisa kakuhle iimpendulo zale mibuzo ibaluleke kangaka ukuze ndibuye nazo kule Ndlu nakwilungu elihloniphekileyo zingaphelanga iintsuku ezisixhenxe. [Kwaqhwatywa.] (Translation of isiXhosa paragraph follows.)
[The MINISTER OF RURAL DEVELOPMENT AND LAND REFORM: Hon Deputy Speaker, I request permission from this august House and from the hon member to award me some time to go and prepare the answers for these important questions and bring them back to this august House within seven days. [Applause.]]
Measures regarding renewable energy target set for 2013
260. Mr L W Greyling (ID) asked the Minister of Energy:
(1) Whether she is considering increasing the renewable energy target set for 2013; if not, why not; if so, what are the relevant details;
(2) what progress has been made in reaching this target;
(3) whether any measures have been proposed to ensure that the target is reached; if not, what is the position in this regard; if so, what measures? NO2582E
Deputy Speaker, the question is whether the Minister is considering increasing the renewable energy targets set out for 2013. Now, in the short term, the department intends to meet the 2013 targets, whilst reviewing the Renewable Energy White Paper to determine medium- and long-term targets.
Beyond 2013 the review process will be consultative, and inputs from stakeholders and the general public will be taken into account in determining the next renewable energy target.
The answer to the second part of the question is that since the report of the Renewable Energy Summit in March 2009, less than 10% has been achieved. Nonetheless, the Renewable Energy Feed-In Taroff - REFIT - scheme provides incentives that will increase renewable energy uptake above the 10 TWh level.
The answer to the final part of the question is yes, measures have been proposed to ensure that the target is reached. The new-generation capacity regulations were promulgated in 2009, and will enable the procurement of power from independent power producers, including those using renewable energy sources. This regulation defines the institutional arrangement within which this procurement must be controlled.
The aforementioned regulation is expected to expedite the procurement process of the independent power producers, IPPs, as well as ensure that all future electricity plans are streamlined to correspond with the country's position on the primary energy mix in general. Clean energy production is prioritised in that plan.
Furthermore, the department, through Nersa, the National Energy Regulator of SA, is implementing the Renewable Energy Feed-In Tariff - the REFIT, as you know - which is an incentive scheme for the procurement of renewable energy at a very attractive tariff level. Thank you.
Thank you, Deputy Speaker. Minister, it is clear why government is not prepared to increase the paltry renewable energy target of 10 000 gigawatt hours by 2013. It is because you have not even reached 5% of this target, and it is clear that with the current plans, we won't even get to half of it.
This is in contrast to many other countries that are steaming ahead on the renewable energy front, as they have indentified it as a major growth industry. China, for instance, has already exceeded its 2020 target for wind energy and has created thousands of jobs and new industries in the process.
I often hear rhetoric from government around the need for clean energy, but unfortunately the facts speak for themselves. The feed-in tariffs don't work, because no cost-recovery mechanism has been put in place to force Eskom to sign power-purchase agreements with renewable energy producers. The latest National Integrated Resource Plan allegedly also has targets for renewable energy which will only see us achieving half of our renewable energy target by 2013. In addition, the new build programme of Eskom has also made provision for only 1% of it being from renewable energy.
Minister, renewable energy can be more rapidly deployed than either coal or nuclear energy. Will you therefore direct some of the billions of rand across to renewable energy? [Time expired.]
Thank you very much. Let me state - and, I think, I have stated this with Mr Greyling on many occasions - that government is very committed to renewable energy. Any country that is not committing to renewable energy is being suicidal economically.
In terms of Eskom's build programme on renewable energy, I think the intention is really that we involve independent power producers in a much bigger way. There the hon Greyling's question on the power-purchase agreements becomes very relevant. I think the ability of an agency such as Eskom to conclude power-purchase agreements needs to be reviewed. I would agree with you on that. Perhaps one needs an independent agency, because one is almost having a conflict of interests. These are matters that we are taking up with Eskom in that regard.
We are very encouraged to see that Sasol is now making a major investment in clean energy, and we are encouraging other independent power producers to join in.
But bear in mind that the feed-in tariffs are very expensive, and if Eskom were to do that to that agreement, Eskom would be purchasing power at a much higher rate than they could sell that power. That places Eskom in a very difficult position.
I do fully endorse your concerns and that of the Minister of Energy around renewable energy, and we do sincerely hope that in the next year we will be able to demonstrate very decisive action on the clean energy front.
Thank you, hon Minister, for that answer. I would like some more information on the answer you have just given and also on what the hon member Greyling said.
As you said, the REFIT 1 and 2 tariffs are considerably higher than the price that Eskom, as the sole producer, currently pays to buy or gets paid to produce energy. Therefore, I would like to know if the Ministers see these REFIT 1 and 2 tariffs as restraining factors in the government meeting its targets. Alternatively, does the government plan to subsidise these independent power producers that want to invest in renewable energy?
Your observation is correct. I think it would be inappropriate for me to be commenting on a decision made by the regulator. I don't want to be seen to be contesting what the regulator is saying on these matters, but it does pose problems.
We are back to the issue of Eskom having to provide energy at incredibly low costs. This prohibits it from being able to purchase from independent power producers - not only clean energy, but other power producers.
That is one of the realities that we are facing when Eskom approaches Nersa to request a tariff increase. This is not only because we need to have independent power producers, but it's primarily because Eskom has to meet its operating costs. But, until the issue of the appropriate tariff level for the purchaser of power is firmly established, there are going be problems around that.
In terms of promoting the renewable energy industry, there are discussions with the Department Of Trade and Industry. This is an industry, and we need to seize the possibilities there for creating jobs and going forward. So, yes, there is that kind of engagement, but the tariff issue is a problem.
Thank you, hon Deputy Speaker. The ANC supports the Minister in her endeavour to change the lives of the people of South Africa through the energy mix. We believe it is not proper to stand back and criticise when we all have interests as members in the people of South Africa.
The ANC manifesto reads:
Our priorities will specifically target the needs of the youth, women, workers, the rural poor, the elderly, and people with disabilities.
Hon Minister, how will the renewable energy targets, as outlined in your response, impact on this? Thank you.
There are many ways in which renewable energy impacts in a very positive way on any country. Firstly, it reduces the level of carbon emissions, and that has a considerable consequence for climate change.
Secondly - and, I think, very importantly for poor people who often live in the areas that are most polluted - it does impact on their quality of life in terms of environmental pollution.
Finally, in terms of the economy, it is extremely important that this country follow a very committed path to renewable energy. This world is changing very fast. With Copenhagen coming into effect, any country that is not cognisant of the damaging purely economic consequences of not being seen to commit to renewable energy will face the economic consequences thereof. Thank you.
Thank you, hon Minister. A lot of what you have said has taken care of my questions, because we hear government talking clearly about prioritising renewable energy and that is encouraging, but then again we see how slowly the process is moving. So there are obvious blockages and obvious challenges. You have elaborated on some of those challenges and perhaps you could elaborate some more.
When it comes to the independent power producers, what incentives will drive this process and get it happening? Thank you.
Deputy Speaker, my firm belief is that independent power producers will come in when they believe that, firstly, there is a market for their product; and, secondly, that they will be able to secure a purchase agreement for their energy that covers their operational and other costs. Until such time that that power-purchase agreement is able to be sealed, the coming in of independent power producers will always be prohibited.
That is why this debate about the cost of our electricity and the costs that we are requiring Eskom to pay to purchase power from independent power producers, which costs are way above what they are selling that power for, becomes a critical strategic issue. Thank you.
See also QUESTIONS AND REPLIES