The National Energy Efficiency Agency (NEEA) says South Africa could benefit from the establishment of a renewable energy utility to focus the development of South Africa’s energy infrastructure on alternatives to coal-fired electricity generation.

NEEA Operations Manager, Barry Bredenkamp, says South Africa faces another looming power crisis in two years and could continue to play catch-up in the energy stakes for the next 20 years, unless Government acts quickly to finalise a comprehensive and integrated energy policy that will address the short-term crisis and bring long-term stability to the sector.

Delays and uncertainty in the implementation of fundamentally-sound policies such as the Renewable Energy Feed-In Tariff (REFIT) are discouraging potential investors from ploughing billions into the development of renewable and alternative energy infrastructure

“South Africa is by no means the only country facing energy shortages or wanting to invest in renewable energy alternatives,” says Bredenkamp. “These delays mean that we move to the back of the queue when developers consider viable locations for new plant and facilities.”

It has been estimated that REFIT could create 125 000 jobs once it is up and running, in addition to opening the market for renewable and alternative energy sources to pre-empt another round of load-shedding and power outages.

Bredenkamp says there are numerous alternatives to coal-fired electricity, including nuclear energy, wind turbines, solar energy, wave energy and biomass energy, but these cannot be fully explored while the policy framework remains fragmented.

He says it is no secret that 2013 will be a critical year for South Africa in energy terms, as demand is once again poised to outstrip available capacity. While the Medupi and Kusile power stations are due to come on line in 2014 and thereafter, these may be too little too late, as existing older power stations come to the end of their useful life and must be replaced.

Over R5-billion has been made available in an energy efficiency fund for demand side management (DSM) incentives to “buy back” saved energy, but once again the regulations have not been approved and this therefore cannot be implemented.

“Together with renewable energy alternatives, fast-tracking the implementation of energy efficiency could prevent another crisis,” says Bredenkamp. “The whole world is moving towards alternative energy sources. The power supply crisis has accelerated the need to diversify South Africa’s energy mix and embrace various forms of renewable energy.

“Lastly, it is also imperative that consumers take note of the situation and adjust their behaviour, to not only contribute to alleviating the overall energy problem, but to reduce household costs in light of escalating tariffs,” concludes Bredenkamp.