By AGISANANG SCUFF

20 June 2025 – The Portfolio Committee on Electricity and Energy received a briefing yesterday from the Minister of Electricity and Energy, Dr Kgosientso Ramokgopa on public allegations made by the uMkhonto weSizwe Party relating to the Battery Energy Storage Independent Power Producer (IPP) Procurement Programme.

In addition, the committee said it was briefed by the Department of Electricity and Energy on its revised strategic plan 2025-2030, annual performance plan (APP) 2025/26 and Budget Vote No 10 for 2025/26, including the impact on its entities. During their deliberations, members of the committee including the Minister were of the view that the meeting should ideally occur in an in-person setup rather than on a virtual platform.

The Chairperson of the Committee, Nonkosi Mvana said members requested that the one agenda item be moved where the committee would meet in-person. Mvana said the committee agreed to postpone the contentious battery energy storage IPP matter to an in-person meeting next week while proceeding with the departmental presentation.

“Regarding the revised strategic plan and APP, the committee expressed a view that the Just Energy Transition could disproportionately benefit a select few individuals while neglecting the working class.

“Some committee members emphasised that any transition from carbon-based energy sources to renewables must consider the livelihoods of those who may be adversely affected,” she said.

Mvana further said committee members sought clarity on the financial sustainability of state-owned entities such as Eskom and the National Electricity Regulator of SA. She added that questions were raised regarding the root causes of their ongoing financial instability, which necessitates continuous bailouts.

“Members requested a detailed plan and timeline for achieving improved financial stability by 2030, along with specific metrics to track progress. Additionally, there was a call for transparency regarding the mechanisms in place to ensure accountability and efficient utilisation of funds.

“Particularly, since a significant portion of the department’s budget is allocated to the Integrated National Electrification Programme. The delay in finalising the Gas Master Plan and the Integrated Resource Plan (IRP) was another critical issue highlighted by committee members,” said Mvana.

She said the urgency of these frameworks was underscored, particularly in light of the impending “gas-supply cliff” and the need for a cohesive energy strategy. Mvana said members expressed concerns that the absence of these plans could hinder the country’s ability to transition effectively to renewable energy sources.

“Another important point raised during the discussions was the department’s approach to climate change. Committee members requested clarity on the initiatives being implemented to address climate objectives and the tangible results expected in terms of emissions control and air quality improvement.

“The need for a comprehensive strategy to mitigate climate change impacts was underscored. Furthermore, the committee discussed the importance of addressing the national skills shortage within the energy sector,” she said.

Mvana said members sought information on how the department plans to enhance workforce skills to meet the demands of the energy transition. She said, additionally, the role of digitisation in combating corruption and promoting efficiency within the department was also a topic of interest.

“In response, the department acknowledged the concerns raised and committed to providing detailed information on the financial sustainability of state-owned entities, including the steps being taken to reduce reliance on bailouts.

“The department outlined ongoing efforts to create a more accountable budget framework and emphasised the importance of stakeholder engagement in finalising the Gas Master Plan and IRP,” said Mvana.

She said the department assured the committee that measures are being implemented to address load reduction issues and enhance energy distribution. Mvana said regarding skill development, they indicated that partnerships with educational institutions and training programmes are being explored to build capacity in the energy sector.

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