SA's current energy system is a threat to the vision of a green economy, said Dr Velaphi Msimang, chief director of hydrogen and energy, at the Department of Science and Technology (DST).
He was speaking during a panel discussion on technology innovation at the country's first Green Economy Summit, held in Sandton this week.
Msimang pointed out that energy system transformation is enabled by advances in technology and ordinarily takes several decades. “SA is beginning with one of the most carbon-intensive systems and has little time to achieve the transformation. We don't have the luxury of time to transition systems away from coal to cleaner sources of energy.”
He said SA's current energy system does not have sufficient capacity to support economic growth, and to create such a system, you need three drivers: economic growth, universal access, and environmental protection.
“The kinds of technologies we want to develop are those that hit the sweet spot, where there's a correct balance between these three drivers.”
Moving towards green economy, he noted, requires addressing key questions, such as which industries will lead to a reduced demand for energy, while supporting equitable economic growth.
“The best power plant is the one you don't have to build,” said Msimang, adding that strategies like demand side solutions can be a faster, more effective and less costly way of managing energy.
Dr David Phaho, CEO of the Tshumisano Trust under the Technology Innovation Agency (TIA), argued that innovating for a low-carbon future is challenging in a country facing other priorities, such as job creation and poverty. He added that many technologies were still relatively expensive. “It's also fundamentally about behaviour; we have to wean ourselves off the fossil fuels we've relied on for so many years.”
Msimang stressed that there's a huge global market for innovative energy solutions, and an opportunity to make SA's green economy a globally competitive one. “The road to a green economy is that of creative destruction; some industries will have to die and different ones created.”
He stressed that a lack of adequate investment will keep the vision of a low-carbon economy in SA a pipe dream. “The current policy architecture needs a revamp for a green economy to be realised.”
Tech transfer
Session chair Imraan Patel, chief director of the DST's innovation and climate change sector, said a key emerging issue is that of international technology transfer and incorporation. “For SA to take on certain mitigation challenges, it needs to be supported by global technology transfer, finance and capacity-building.”
He added, however, that the international environment produces some very specific challenges regarding technology.
During the Q&A session, a delegate mentioned that innovation has to be tackled from a local perspective. “Innovation is driven by need, and is a key driver for survival, not only for the economy, but for the environment and society as well,” he said.
He added that technology transfer, while necessary, sets a certain precedent. “It results in incremental innovation, so you're borrowing ideas and not truly innovating. We need to build capacity for our own innovation. You have to transform science parks into innovation hubs for sustainability that drive the economy, but in a green way.”
Mac Makwarela, from the multilateral cooperation division at DST, said: “It's important that we get the technology, and the skills to maintain and install that technology, on our own, without depending on the providers of those technologies going forward.”
Full minds, empty pockets
Another delegate mentioned researchers are struggling to find funding, as the risk factor associated with innovation initiatives often leads to banks rejecting loan applications.
“In the process of applying for funding, the risk factor is emphasised so much that the project becomes unbankable,” he said. “So you've got researchers with good ideas, but they don't know what to do with them. It seems the green economy is only a theory.”
Msimang noted that one of the key issues for the TIA was recognising the risks involved in innovation may be too much for banks, and that it needs to play a greater role in enabling the commercialisation of technology research and development.
“Public investment in energy innovation needs significant upscaling and better governance,” added Msimang.
Focused approach
An audience member involved in engineering training at Eskom said there wasn't enough collaboration between the DST and Eskom in targeting certain projects which need attention.
“For example, with the 15% reserve margin, for every 40GW of power, we have to produce 6GW of electricity to just throw away. If research was being done to reduce this to 5%, we could save 10% - which is close to the size of Medupi, just by reducing the reserve margin.”
Eskom recently secured a $3 billion loan from the World Bank to fund the 4 800MW Medupi coal-fired station in Limpopo, amid much controversy. Acknowledging that more than a whole plant lying idle is a problem, Velaphi noted the centralised power generation model was an obstacle, and that diversifying the energy system was key in moving away from centralised power.
Another point raised by the Eskom representative was that all these measures depend on the production of skilled engineers. “We need to train people to maintain the technology locally; otherwise the cost of implementing new solutions is too much. We can't keep flying a German in every time we need to fix a part on a machine, because we're importing technology from there.”
Msimang conceded that the DST has to strengthen collaboration with major players to ensure the right number of engineers is employed productively in the right jobs. He added that the next generation of engineers should be trained to keep up with state-of-the-art technology.
Patel concluded by saying these issues would require a mindset shift, and thinking long-term. “It's clear there are several issues awaiting leadership from the DST.”
In the conference's draft statement of conclusion, released yesterday, government, business and civil society resolved to work together on various cross-cutting areas. These include the development, deployment and commercialisation of innovative science and technology solutions aimed at advancing a green economy. “Innovation will be a critical driver of a green economy and job creation,” it states.
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