Danone SA - August 2013 2908 | Page 10

Danone Southern Africa Energy Management Services Report NEWS ARTICLE South Africa's energy supply South Africa's steady economic growth as it increasingly focuses on industrialisation, together with its mass electrification programme to take power into deep rural areas, has seen a steep increase in the demand for electricity. In fact, South Africa's energy demand is expected to be twice the current levels by 2030. ergy Years of underinvestment in the country's power infrastructure has meant that energy demands are rising faster than Eskom, the state-owned company in charge of the majority of energy generati owned generation and distribution, can meet them. Together with Eskom, the government's Department of Energy has embarked on a massive programme to bring the electricity supply and distribution system into balance. With an infrastructural price tag of around R340-billion, Eskom is building new power stations, including Medupi in Limpopo that will make its first on, contribution to the grid by 2013, and Kusile, which will come on stream in mid mid-2014. Green energy South Africa, which has always been heavily dependent on coal, is looking at ways to diversify its powerpower generating capacity. The Development Bank, the Treasury and Eskom are working on a renewable energy programme that involves independent power producers. The government is also looking to support sustainable green energy initiatives on a national scale through a diverse range of clean-energy options as envisaged in the Integrated Resource Plan 2010. In terms of this energy plan, which is a 20-year projection on electricity demand and production, about 42% of electricity year generated must come from renewable resources. enerated The Integrated Municipal Infrastructure Project will focus on 23 of the least resourced districts, and address least-resourced all the upgrades and backlogs – including in electricity – needed to serve the 17-million people living in million li those areas. Independent power producers have been introduced. Including projects that cover solar photovoltaic technology, wind, small hydro and concentrated solar thermal generators,these privately held entities and facilities sell power to the government, contributing to the country’s energy mix. overnment, Prepared by: M Ngwenya Page | 10