Greener energy laws in the pipeline for Western Cape
The announcement by the Western Cape MEC Tasneem Essop that the Province will begin drafting a provincial renewable energy Act (see last weeks Legalbrief Environmental), is welcome but could be hindered by constitutional obstacles.
The regulation of energy is primarily a national government responsibility although provincial governments have concurrent competency in relation to the environment and pollution. This means that it may be difficult for the provincial department to spearhead the drafting process, EnAct International notes. The announcement of the proposed legislation comes amid growing environmental concerns about the use of coal as an energy source. Coal currently accounts for approximately 77% of SAs primary energy needs. With SA supplying two-thirds of the continents electricity, electricity generation is largely dependent on coal, which results in adverse impacts on the environment. The proposed legislation is expected to establish incentives, tax breaks and tariffs which will serve to increase renewable energy use among the different sectors. In light of the fact that SAs CO2 production has doubled in the last two decades, it is hoped that the proposed legislation will prove significant in taking the lead in reducing the countrys carbon emissions. Delays in finalising the legislation could however be fatal for small renewable energy businesses as customers may delay orders in anticipation of future subsidies. Visit the EnAct International Web site