SALGA Energy Summit 20 ENERGY 18 SUMMIT “ Defining the Energy Future of Local Government “ Programme Sandton Convention Centre Johannesburg, Gauteng 7-9 March 2018 1 SALGA Energy Summit Objectives of the Energy Summit 1. To understand how the transition manifests economically, legally, financially and institutionally for Local Government. 2. To pursue consensus of the political leadership in the energy sector to agree that change is necessary. 3. To examine the possible scenarios for South African Energy sector and to define an ideal Future Local Government Utility. 4. To develop and define a framework on the country compact for the energy sector. Themes of the Energy Summit The purpose of this theme is to examine key megatrends in the energy sector that will drive change over the next five to ten years. The theme Megatrends in the investigates how changes such as decentralisation, democratisation, Energy Sector digitisation and decarbonisation will affect the energy sector, both internationally and nationally. It also looks at the drivers of the trends (such as market forces, policies and changing consumer behaviour) and the resulting risks and opportunities that are emerging for all players. The purpose of this theme is to examine how legislative frameworks can act as key enablers of change in the energy sector. The theme looks Legislative at key opportunities and constraints in the legislative framework and frameworks investigates best practice examples in enhancing the legal framework to in the Energy create an enabling environment for energy sector transitions. The theme Sector also explores the electricity planning policy in South Africa with a focus on the Eskom/Municipality dichotomy and the roles of municipalities in terms of generation, transmission and distribution value chain. Opportunities The purpose of this theme is to examine how opportunities shaping shaping energy energy economics help to ensure local economic growth. The theme economics in the considers appropriate market designs of the electricity supply industry Energy Sector and how municipalities in South Africa can continue to generate revenue while building economic opportunities in the energy sector. The theme covers topics such as municipal revenue sustainability, electricity affordability energy forecasting and opportunities for radical new business models for all players Day 1: Wednesday, 7th March 2018 Time Item 09:00 – 12:30 Registration, Credentials Confirmation and receipt of Documentation 10:00 – 11:00 Media Briefing 11:00 – 12:00 National Executive Committee Meeting 11:00 – 12:30 Lunch and Arrival of Delegates 2 SALGA Energy Summit Session 1: Setting the scene for defining the future of Local Government Programme Director: Vuyo Mvoko (Radio and TV Personality) Time Item Speaker 13:00 – 13:20 Official Opening Ceremony Opening Prayers Rendition of the National Anthem 13:20 – 13:30 Welcome by Host Municipality Cllr. Herman Mashaba, Executive Mayor City of Johannesburg 13:30 – 13:50 Official Opening and Welcome Cllr. Parks MphoTau, Remarks SALGA and UCLG President 13:50 – 14:05 Premier’s Welcome Address Hon. David Makhura, Premier of Gauteng 14:05– 14:10 Introduction of the President of Hon. Dr Zweli Mkhize, the Republic Minister of Cooperative Governance and Traditional affairs 14:10 – 15:00 Keynote Address His Excellency Cyril Ramaphosa, President of the Republic of South Africa 15:00 – 15:30 TEA 15:30 – 17:30 The Grand Political Debate: Cllr. Parks Mpho Tau, “Defining the Energy Future of SALGA and UCLG Local Government” President Hon. Jeff Radebe, Minister of Energy Hon. Pravin Gordhan, Minister of Public Enterprises Cllr. Xola Pakati, Executive Mayor of Buffalo City Cllr. Thembi Nkadimeng, Executive Mayor of Polokwane Mr Jabu Mabuza, Eskom Chairperson Mr Kumi Naidoo, Secretary General of Amnesty International 17h30 – 20h00 Official Opening of Exhibition Area and Cocktail Function 3 SALGA Energy Summit Day 2: Thursday, 8th March 2018 Session 2: Transitions, megatrends and future models in the energy space Programme Director: Cllr Lindiwe Ntshalinsthali, SALGA Deputy President Purpose: Provide an overview of the energy transitions, megatrends and future models in the energy space. The main objective of this session is to introduce the three themes of the Energy Summit, namely: 1. Megatrends in the energy space internationally and nationally; 2. Legal framework; and 3. Policy implications as well as energy economics. Time Item Speaker 08:45 – 09:10 The Role of Local Government in the Hon. Dr Zweli Energy Landscape Mkhize, Minister of Cooperative Governance and Traditional affairs 09:10 – 09:30 Resist or Purpose: The rapid Mr Hilton Trollip, Embrace trends taking place University of Cape the Energy globally are also visible Town, Energy Transitions: in South Africa, with Research Centre Implications potentially critical for South implications. South Africa Africa can decide to resist this change and keep the status quo or to embrace the change and grasp opportunities for radical new business opportunities. This presentation will analyse the consequences of these decisions. 09:30 – 09:50 South African Purpose: To give an Ms Nelisiwe Energy overview of the current Magubane, Landscape South African energy Current Board Landscape, the status Member of Eskom quo, complexities, and Former DG challenges and of Department of opportunities. Energy 4 SALGA Energy Summit Time Item Speaker 09:50 – 10:10 The Energy Purpose: Major shifts Mr Jeffrey Transition and and trends have Logan, Chief Megatrends occurred in the energy Analyst, National in the Energy sector globally. The Renewable Energy Space speaker will present Laboratory, USA Internationally and assess these major transitions and discontinuities occurring in a range of countries around the world. 10:10 – 10:30 Constraints Purpose: Whilst Mr Thembani and the current policy Bukula, Former opportunities framework is Regulator Member in the current beginning to open up at NERSA policy to renewable energy, framework the electricity sector in South Africa is still largely dependent on a traditional, monopolistic coal- reliant electricity sector model. How can the policy framework enable effective adaptation to the current energy transition? 10:30 – 10:50 The future Purpose: Municipal Mr Paul realities and revenues are declining Vermeulen, City of innovations due to unaffordability of Johannesburg for a electricity, technology sustainable advancement and energy value slow economic chain growth - negatively impacting service delivery. How does the energy transition provide opportunities for municipalities to explore other sources of income and ensure revenue sustainability? 10:50 – 11:30 Discussions: Purpose: for audience to engage speakers in a Question and Answer session. 11:30 – 12:00 Te a 5 SALGA Energy Summit Session 3: PANEL DEBATE: Can the South African energy value chain survive in its current format, without embracing the energy transition (Economically, socially and institutionally, technically, policy implications)? Facilitator: Dr Willem De Beer Purpose: The panel will discuss whether the South African Energy value chain can survive in its current form or operation considering the changes in the sector which includes the energy transition amongst other things What are the current problems or challenges in the South African energy sector? What are the economic, social and institutional implications for the energy transition for South Africa? How should key South African stakeholders in the sector respond to the change? What needs to change in order to respond to the current challenges including the energy transition? Sharing International Experience.e Time Item Speaker 12:00 - 13:30 Panel debate • National Treasury and audience engagements • Department of Energy • Mr Brian Sechotlho, NERSA • Mr Louis Maleka, Eskom • Mr Sandile Maphumulo, Independent Municipal Expert • Mr Mvuleni Bukula, Nelson Mandela Bay Municipality • Mr Kadri Nassiep, City of Cape Town • Mr Silas Zimu, Former Energy Advisor to Presidency 13:30 – 14:30 Lunch 6 SALGA Energy Summit Session 4: What are the current challenges in the energy sector and how can these challenges be addressed in a manner that is sustainable, considering the energy transition? What does ‘embracing change’ mean for South Africa? Purpose: The overall objective of the breakaway sessions is to examine possible business model scenarios for the South African Energy Sector and to define an ideal energy future for local government. Time Breakaway Sessions Breakaway Session 1: How can South Africa address the current challenges and major trends in the energy sector? Introduction of Breakaway Session: Mr Serutle Ntlatleng, Ekurhuleni Municipality and AMEU Session Sponsors: Hon. Andries Nel, Deputy Minister COGTA and Mr Sean Friend, Old Mutual Facilitator: Dr Willem De Beer Problem Statement: Numerous trends are challenging the South African Energy landscape, threatening the sustainability the Electricity sector. Outcomes • Possible Solutions for the current challenges in the energy sector; Breakaway Sessions • Possible Scenarios to address major trends in the South 14:30 – 17:30 African Energy Sector; and • Propose at least three scenarios of sustainable energy business models considering the current changes in the sector. Identifiying what municipalities can do to make the electricity service provision more sustainable, going forward. Breakaway Session 2: What does the Energy Transition mean for municipal revenue, and is it time to change the current business