2020/21 - Energy

1 2020/21 ANNUAL performance PLAN 2020/211 CONTENTSList of Figures 3 Abbreviations 3 Executive Authority s Statement 5 Accounting Officer Statement 7 Official Sign-Off 12 Part A: The Strategic Mandate 141 Updates to the relevant legislative and policy mandates Legislative mandate Policy mandate 152 Updates to institutional policies and strategies The Integrated Resource Plan (IRP) Integrated Energy Plan (IEP) Integrated National Electrification Programme The Renewable Energy Independent Power Producer Procurement Programme (REIPPPP)

2 Gas Utilisation Master Plan Mining Charter Mineral beneficiation Shale gas research project nuclear 203 Updates to relevant court rulings 21 Part B: Strategic Focus 224 Updated situational analysis External environmental analysis Global context African context South Africa Mining industry analysis Global context African context Exploration in Africa South African context Energy industry analysis Global context African Context South Africa External environmental analysis Global context African context South Africa Internal environment analysis Organisational structure DMRE performance overview Corporate Support 48 Part C.

3 Measuring performance 505 Institutional programme performance information Programme 1: Administration Outcomes, outputs, performance indicators and targets Output indicators: Annual and quarterly targets Explanation of planned performance over the medium-term period Programme resource consideration 58 DEPARTMENT OF MINERAL RESOURCES AND Programme 2: Minerals and Petroleum Regulation (MPR) Outcomes, outputs, performance indicators and targets Output indicators: annual and quarterly targets Explanation of planned performance over the medium-term period Programme resource considerations Programme 3: Mining, Minerals and Energy Policy Development (MMEPD) Outcomes, outputs, performance indicators and targets Output indicators: Annual and quarterly targets Explanation of planned performance over the medium-term period Programme resource considerations Programme 4: Mine Health and Safety Inspectorate (MHSI) Outcomes, outputs, performance indicators and targets Output indicators.

4 Annual and quarterly targets Explanation of planned performance over the medium-term period Programme resource considerations Programme 5: Programmes and Projects Outcomes, outputs, performance indicators and targets Output indicators: Annual and quarterly targets Explanation of planned performance over the medium-term period Programme resource considerations Programme 6: nuclear Outcomes, outputs, performance indicators and targets Output indicators: Annual and quarterly targets Explanation of planned performance over the medium-term period Programme resource considerations 1066 Institutional resource allocation for branches Expenditure analysis 1127 Updated key risks and mitigation strategies 1148 Public Entities 1199 Infrastructure Projects Expenditure on long-term infrastructure and other capital plans Extending access to electricity Enhancing Energy efficiency 13310 Public-Private Partnerships (PPPs) 135 Annexures to the Annual performance Plan 136 Annexure A: Amendments to the Strategic Plan 137 Annexure B.

5 Conditional grants 137 Annexure C: Consolidated indicators 137 Annexure D: District development model 138 Annexure E: Technical indicator descriptions (TIDs) 138 ANNUAL performance PLAN 2020/213 Figure 1: Global growth projections 23 Figure 2: World trade, industrial production and the manufacturing PMI 24 Figure 3: Manufacturing PMIs for select countries/region 24 Figure 4: Real GDP growth in Africa, 2020 24 Figure 5: Contributors to negative growth in GDP in Q3 25 Figure 6: South Africa s annualised GDP growth in 2019 25 Figure 7: Lower output recorded by most manufacturing sub-sectors 26 Figure 8: Mining output 26 Figure 9: Summary of SA s economic overview 27 Figure 10: World exploration trends 2018 28 Figure 11: 2019 Annual exploration budgets by region (US$M) 29 Figure 12: Annual budget trends 29 Figure 13: Contribution of mining to the South African economy 31 Figure 14: South Africa s share of African exploration budgets 2000 2017 32 Figure 15: Junior miner licenses in South Africa (2017) 33 Figure 16: Mining industry health and safety performance 33 Figure 17: Global power capacity by source in the Stated Policies Scenario 36 Figure 18.

6 Renewable Energy total primary Energy demand by category and region 38 Figure 19: nuclear Energy production across the globe 38 Figure 20: Final consumption by fuel, sector SSA (excl. SA) 39 Figure 21: Change in Energy demand and average annual GDP growth rate by region in the Stated Policies Scenario, 2018 2040 40 Figure 22: Natural gas resource discoveries, demand and production in selected countries in Africa 40 Figure 23: South African primary Energy mix 41 Figure 24: DMRE organisational structure 43 Figure 25: DMRE balanced scorecard 514IR Fourth Industrial RevolutionAHTR Advanced High-Temperature Reactor AEMFC African Exploration Mining and Finance Corporation AFD Agence Fran aise de D veloppementAIDC Automotive Industry Development Centre APP Annual performance PlanB-BBEE Broad-Based Black Economic EmpowermentBSTEP Black Science.

7 Technology and Engineering Professionals BW Bid WindowCGS Council for GeoSciencesCEF Central Energy Fund DIIR Disabling Incident Injury RateDoHE Department of Higher Education and Training DoL Department of Labour DST Department of Science and Technology DMRE Department of Mineral Resources and EnergyETDP SETA Education, Training and Development Practices SETA EPP Electricity Pricing PolicyEAF Energy Availability Factor EDP Enterprise development programme EMP Environmental Management PlanEY Ernst & YoungFNRBA Forum for nuclear Regulatory Bodies in Africa GDP Gross Domestic ProductGTP Geoscience Technical ProgrammeHDIs Historically Disadvantaged IndividualsHDSA Historically Disadvantaged South AfricansIAEA International Atomic Energy AgencyIDC Industrial Development CorporationList of FiguresAbbreviationsDEPARTMENT OF MINERAL RESOURCES AND ENERGY4 IDP Integrated Development Plan IDZ

8 Industrial Development ZoneIEA International Energy AgencyIEP Integrated Energy PlanIMF International Monetary Fund INEP Integrated National Electrification Programme IPCC International Panel on Climate ChangeIRP Integrated Resource Plan MES Minimum Emission Standards MMP Multidisciplinary geoscience mapping programme MTSAO Medium Term Strategic Adequacy OutlookMHSI Mine Health and Safety Inspectorate MPRDA Mineral and Petroleum Resources Development Act MQA Mining Qualifications Authority MTSF Medium Term Strategic FrameworkMW MegawattMYPD Multi-Year Price DeterminationNDP National Development PlanNEDLAC National Economic Development and Labour CouncilNERSA National Energy Regulator of South AfricaNEMA National Environmental Management ActNICD National Institute for Communicable Diseases NMOG National Macro Organisation of GovernmentNRWDI National Radioactive Waste Disposal InstituteNDC Nationally Determined Contribution NNRA Nigerian nuclear Regulatory AuthorityOHS Occupational Health and SafetyPASA Petroleum Agency of South Africa PBMR Pebble Bed Modular Reactor PMI Purchasing Managers IndexPPI Policy Perception IndexPWC

9 Price Waterhouse CoopersRAS Regulatory Accounting SystemREEEP Renewable Energy and Energy Efficiency PartnershipRRs Research Reactors S&P Standard & PoorSADC Southern African Development CommunitySARB South African Reserve BankSARS South African Revenue ServiceSET Science-Engineering-TechnologySFF Strategic Fuel FundSMR Small Modular ReactorsSMME Small, medium, and micro enterprisesSOE State Owned EnterpriseSSA Sub Saharan AfricaPV Solar photovoltaicsSADPMR South African Diamond and Precious Metals RegulatoriGAS South African Gas Development Company SANEDI South African National Energy Development InstituteNNR South African nuclear RegulatorSDT State Diamond Trader TIA Technology Innovation Agency TID Technical indicator descriptionTWh Terawatt-hours WiE Women in EnergyWSP Workplace Skills Plan WEF World Economic ForumWEC World Energy CouncilAbbreviationsANNUAL performance PLAN 2020/215 The reconfiguration and merger

10 Of the Department of Mineral Resources and the Department of Energy into a new Department of Mineral Resources and Energy (DMRE), was pronounced by the President in June 2019 to better capacitate and respond to the strategic objectiv