Committee reviews energy plans amid allegations

The Portfolio Committee on Electricity and Energy met with Minister of  Electricity and Energy Dr. Kgosientso Ramokgopa to discuss allegations from the uMkhonto weSizwe Party concerning the Battery Energy Storage Independent Power Producer Procurement Programme.

The committee also received updates from the Department of Electricity and Energy on its strategic plan for 2025-2030, the annual performance plan for 2025/26, and Budget Vote No 10 for 2025/26, including the implications for its entities.

During the meeting, Committee members including Ramokgopha expressed preference for in-person discussions rather than virtual ones.

They decided to postpone the battery energy storage IPP discussion to next week and proceed with the departmental presentation.

Regarding the revised strategic plan and annual performance plan, committee members raised concerns that the Just Energy Transition might favour few individuals while overlooking the working class.

They emphasised that transitioning from carbon-based energy to renewables must consider the livelihoods of those at risk of being negatively impacted.

Members sought clarification on the financial health of state-owned entities like Eskom and the National Electricity Regulator of South Africa.

They questioned the reasons behind their ongoing financial difficulties, which require constant bailouts. The committee requested detailed plan with a timeline for achieving financial stability by 2030 and metrics to measure progress.

They also called for transparency about how funds are used, especially since a large portion of the department budget supports the Integrated National Electrification Program me.

The committee highlighted delay in finalising Gas Master Plan and Integrated Resource Plan, stressing the urgency of these frameworks in light of the looming “gas-supply cliff” and the need for unified energy strategy.

Members worried that without these plans, the country might struggle to transition effectively to renewable energy.

Another significant issue discussed was the department approach to climate change.

Committee members sought clarity on initiatives aimed at meeting climate objectives and the expected outcomes regarding emissions control and air quality improvement.

They emphasised the need for comprehensive strategy to address climate change.

The committee also addressed the national skills shortage in the energy sector, asking how the department plans to improve workforce skills to meet the demands of the energy transition.

The role of digitisation in fighting corruption and enhancing efficiency within the department was also discussed.

In response, the department acknowledged the concerns and pledged to provide detailed information on the financial sustainability of state-owned entities and the strategies to reduce reliance on bailouts.

They outlined efforts to establish more accountable budget framework and stressed importance of stakeholder engagement in finalising Gas Master Plan and Integrated Resource Plan.