The Civil Engineering Contractor August 2018 | Page 39

BUSINESS INTEL CEC: When talking of the economics of energy, are we simply talking about the affordability of energy? RIL: Definitely not; as much as when we talk economics, we are not simply talking inflation. The fundamental problem of economics is scarcity and appropriate allocation of resources. In Greek, economics is defined as the management of the household (oikos — eco-house, in ancient Greek). So, in a sense, energy economics is considered the correct management, and optimal allocation of energy resources, taking into account factors such as the demand and supply of these resources, as well as their costs and pricing. Stanford University defines energy economics, as “The field that studies human utilisation of energy resources and energy commodities and the consequences of that utilisation.” One can clearly derive from this that energy economics is an all-inclusive field that combines many spheres, such as engineering and geology (utilisation and extraction), economics/finance (commodities concept), climate change (consequences), management (human utilisation) and others. Based on this principle, SAAEE intends to establish a national forum for energy specialists from all professions and spheres of the energy sector (academia, industry, private, and public sector), with the ultimate purpose to build intellectual capacity and thereby improve energy policy. It aims to encourage intellectual debate over the variety of views that exist on how to confront the current energy challenges that South Africa faces. CEC: What are the activities of SAAEE? RIL: The main questions SAAEE receive is why should one become a member, and what is the value proposition? I think all the offerings are around the triptych of dialogue– research–network. The SAAEE activities are designed to: • facilitate the exchange of ideas and experiences; • stimulate high-quality, informed, scientific, and evidence-based research and dialogue; • contribute towards the improvement of public policy in the energy sector; • promote national and international collaborative work with similar organisations; • disseminate multidisciplinary knowledge and expertise, through  workshops and training opportunities; • improve the understanding of energy economics for the general public; • encourage collaboration and joint production of scientific products among energy specialists; and • facilitate the global exchange of ideas in energy economics within the network of IAEE and other affiliates. SAAEE members gain access to restricted publications that provide a broader understanding of energy, environment, economics, relevant policymaking, and theory. Through the publications, meetings, conferences, and forums on relevant and topical issues, members have opportunities to gain insights and information on the current energy conditions and future challenges. Membership provides energy access. South Africa specifically (where the percentage of access to electricity is closer to those of middle- income countries globally and certainly is higher than those of other African countries) experiences uncertainty due to policy decisions, or lack thereof. The delay of the publication of the IRP, political uncertainty, delays for the carbon tax implementation (if), as well as governance worries in the case of Eskom, create an uninviting environment for local and international investors. Market structures that have been inherited from previous regimes might not be the most appropriate for the current conditions, but we need bo ld policy changes — to replace bad policies, or at least have them informed through re-evaluation. Innovative but also evidence-based solutions are needed to improve energy policy propositions and implementations. Roula Inglesi-Lotz, as president of the newly formed SAAEE, aims to lead the charge in promoting quality energy and research role models so the sector can attract and train a new generation of energy economists. the opportunity to network within one of the largest global associations of energy professionals, the IAEE. Specific member benefits include: • Access to restricted top academic publications in the energy field; • Membership of IAEE; • Priority registration for SAAEE meetings, seminars, and conferences at discounted prices; • Free participation at SAAEE meetings; • Inclusion in the SAAEE members directory; • Extensive access to restricted • material on our website, including past conference proceedings and information on energy economics education and employment opportunities; and • Access to the dynamic and active global IAEE website, allowing one to stay updated on all products/ services, with special access to the members-only area with interesting information and events. Should you need more information, please visit the social media pages or website of the South African Association for Energy Economics at www.saaee.org.za, or contact them directly at [email protected] nn CEC August 2018 - 37