presentation to the portfolio committee on energy on skills development in the energy sector ewseta...
TRANSCRIPT
Presentation to the Portfolio Committee on Energy on Skills Development in the Energy Sector
EWSETA Corporate Services Executive
Mrs. Candice Moodley
1
1. Introduction
2. An overview of the EWSETA
3. A discussion on the sector and skills area it covers, including any programmes
3.1 The Energy Sector3.2 Skills areas and programmes covered
4. Some overview of the number and types of skills it produces
5. A discussion on placement of these skills in the market place including a discussion on the working relationship the SETA has with industry and the Government sector (at all levels)
CONTENTS
2
6. What gaps in terms of skills to serve the SA energy sector has the SETA identified, including key and critical skills, and what is currently being done at the SETA to address this?
7. What is currently being done at the SETA to prepare SA for the proposed energy expansion programmes?
8. A discussion on some of the challenges identified at the SETA and how are these being addressed?
CONTENTS
3
An Overview of the EWSETA
The Energy and Water Services Sector Education and Training Authority (EWSETA) is a skills development authority responsible for skills development within the energy and water services sector. The EWSETA has the mandate to manage the skills development needs of the Energy and Water Services Sectors through strategic sector skills planning within the framework of the National Skills Development Strategy lll. The occupational coverage of the EWSETA includes water, gas and electricity.
The electricity sector in South Africa is dominated by the national utility Eskom, which owns and operates most of the national electricity generation infrastructure and supplies 95% of the country’s electricity requirements. The balance is supplied by municipalities and redistributors (4%), as well as private generators (1%). The gas sector in SA is relatively small with many of the big firms involved in wholesaling and retailing gas.
4
An Overview of the EWSETA cont…
There are approximately 129 592 people working in the EW sector in SA.
There are 91 115 people working in the electricity, 33 223 in water and 5 254 in the gas sectors.
The EW sector comprises 0.9% of the total labour force.
Virtually all employees are in the formal sector. There are a mere 3 246 employees in the informal sector. This means that employees in the EW sector are accessible for skills training since their employers are in the formal sector.
5% of the workforce in the Energy and Water sector has up to primary level education, 50% up to secondary level, and 45% of employees have completed tertiary education. This is relatively high compared to other economic sectors.
The secondary and tertiary levels, collectively make up 95% of the sector’s workforce.
5
An Overview of the EWSETA cont… The historic lack of alignment between the organisational, strategic and
governance requirements of the organisation has been addressed by a revised organisational structure, which was approved by the Board in 2013.
The EWSETA has moved from a sector based structure to a value chain structure in order to respond adequately to sector needs. This includes opening regional offices, with the first already operational in the Western Cape.
The size of the EWSETA’s revenue relative to demand for skills in the sector necessitates that we partner with technical and vocational education and training (TVET) colleges to meet intermediate skills needs and universities for high skills needs. The implementation of structural changes is also affected by having to keep administrative costs to an effective 10.5% of the annual budget.
The revised organisational structure is therefore being implemented in a phased manner, with an initial focus on areas aimed at increasing revenue streams.
EWSETA Total Budget for 2015/16: R 229,210,000.00 6
The Energy Sector and Skills Area covered
The EW sector is relatively small in terms of employer and employee size (± 129 592 employees).
Over 84% of employees are in permanent employment. Hardly any informal sector employment.
SA experiencing shortages of qualified, experienced, registered engineers.
The shortage of engineers and artisans are resulting in deteriorating water and energy infrastructure.
EWSETA’s role in SIPs is in expanding access to water and energy, supporting greening skills development.
The scale of infrastructure challenges ahead requires skilled people in a number of occupations identified on the Scarce Skills Lists. Many of these challenges can be addressed through Strategic Infrastructure Partnerships.
7
The Sector and Skills Area covered cont…
Occupations in Demand
OFO CODE OCCUPATION PROGRAMMES
213306 Water Quality Analyst Bursaries
214201 Civil Engineer Bursaries
214301 Environmental Engineer Bursaries
215101 Electrical Engineer Learnerships; Apprenticeships; Bursaries
215103 Energy Engineer Bursaries
642602 Solar Installer Learnerships; Apprenticeships; Bursaries
671101 Electricians Learnerships; Apprenticeships; Bursaries
8
Number and Types of Skills
Primary Energy Mix
9
Number and Types of Skills cont…
Primary Energy Mix
10
Number and Types Of Skills cont…
Potential Direct EMP (Green jobs)En
ergy
ge
nera
tion
Ener
gy a
nd
reso
urce
ef-
ficie
ncy
Emm
issi
ons
and
pollu
tion
miti
gatio
n
Nat
ural
re-
sour
ce
man
age-
men
t
Short term
0
10000
20000
30000
40000
50000
60000
11
Number and Types of Skills cont…
Potential Direct EMP (Green jobs)En
ergy
ge
nera
tion
Ener
gy a
nd
reso
urce
ef-
ficie
ncy
Emm
issi
ons
and
pollu
tion
miti
gatio
n
Nat
ural
re-
sour
ce
man
age-
men
t
Long term
0
50000
100000
150000
200000
250000
12
Placement of these skills & working relationship with industry and Government
13
GOVERNMENT
1) DEPARTMENT OF ENERGY EWSETA part of the DOE Human Resource Development (HRD) Forum Completed EWSETA funded Work Integrated Learning (WIL) for 30
graduates in Electrical Engineer. All graduate were subsequently placed at DOE
Currently DOE requested funding to place 50 graduates –Budget deficit notwithstanding, the project will be recommended for funding
Meeting in the pipeline between EWSETA and DOE to discuss partnership on the following projects:
- South African Nuclear Energy Cooperation (NECSA) and National Energy CSA/CSNPTC (China State Nuclear Power Technology Corporation)
- Nuclear Energy Training Programme- NECSA’s Nuclear Training Academy- NECSA/EWSETA Collaborative Agreement
Placement of these skills & working relationship with industry and Government
14
GOVERNMENT
2) NORTHEN CAPE PROVINCIAL GOVERNMENT Collaborative Agreement signed with the Office of the Premier to support
Northern Cape Provincial Growth Development Strategy Service Level Agreement signed with the Provincial Government, the two
Northern Cape TVET Colleges (Rural & Urban) for the establishment of the Renewable Energy Centre of Excellence (RECE). The purpose of RECE are the following:
- Localisation of solar technology and development of the necessary skills that renewable energy industry requires
- Source of skills to ensure that direct employment is supported locally- Ensure sufficient pool of skills for the establishment of local
manufacturing capabilities and sustainment of SMMEs- Job opportunities created to operationalize RECE- Research and Development in RE
Placement of these skills & working relationship with industry and Government
15
GOVERNMENT
2) EASTERN CAPE PROVINCIAL GOVERNMENT Collaborative Agreement signed with the Office of the Premier to support
THE Eastern Cape Provincial Growth Development Strategy The purpose of the Agreement is to facilitate implementation of skills
development programmes that are aimed at equipping recipients with requisite skills in amongst other the energy sector, particularly in the rural communities
3) VHEMBE DISTRICT MUNICIPALITY Service Level Agreement signed with Vhembe District Municipality for the following
interventions:- 25 unemployed learners are supported on Electrical Engineering Learnership- 25 on Chemical Engineering Learnership
Placement of these skills & working relationship with industry and Government
16
GOVERNMENT
4) VHEMBE DISTRICT MUNICIPALITY Service Level Agreement signed to support on the following interventions:
- 25 unemployed learners are supported - Electrical Engineering Learnership
- 25 learners supported - Chemical Engineering Learnership
5) EHLANZENI DISTRICT MUNICIPALITY Service Level Agreement signed to support on the following interventions:
- 60 learners supported - Electrical Engineering Learnership- 60 learners supported – Mechanical Engineering Learnership
6) RUSTENBURG MUNICIPALITY Service Level Agreement signed to support on the following interventions:
- 15 unemployed learners - Electrical Engineering Learnership
Placement of these skills & working relationship with industry and Government
17
GOVERNMENT
7) TECHNOLOGY INNOVATION AGENCY 60 students participated in an Internship programme 43 (72%) were successfully gained employed TIA requested further support for 30 graduates to be placed- Budget deficit
notwithstanding, the project will be recommended for funding
TECHNICAL VOCATIONAL EDUCATION AND TRAINING (TVETs)
1) ORBIT TVET 120 funded on WIL Electrical Engineering - North West 60 unemployed learners on Electrical Engineering Learnership to be placed
for WIL-North West
2) SEKHULHUNE TVET 60 unemployed learners on Electrical Engineering Learnership to be placed
for WIL - Limpopo Province
Placement of these skills & working relationship with industry and Government
18
TECHNICAL VOCATIONAL EDUCATION AND TRAINING (TVETs)
3) VUSELELA TVET 90 unemployed learners on the Electrical Engineering Learnership will be
placed for WIL – North West 30 unemployed learners on Electrical Engineering Artisanship programme
will be placed for WIL – North West
4) COLLEGE OF CAPE TOWN 60 students funded on WIL in Electrical Engineering – Western Cape 180 supported in Electrical Engineering Bursaries and 150 on Electrical
Infrastructure Construction Bursaries 150 FET Educators supported on capacity building skills programmes
5) CAPRICORN TVET 60 students on the Electrical Engineering Learnership to be placed on WIL
Placement of these skills & working relationship with industry and Government
19
TECHNICAL VOCATIONAL EDUCATION AND TRAINING (TVETs)
6) EASTCAPE MIDLANDS TVET SLA signed to fund the following:
- Refurbishment of Green Technology Centre- Renewable Energy Training equipment
7) WEST COAST TVET 75 students supported in the Renewable Energy System Design Skills
Programme 75 supported in the Electrical Engineering Learnership 75 supported on artisan development programme in Electrical Engineering
8) SOUTH CAPE TVET 15 students supported on the Electrical Engineering WIL programme
Placement and working relationship with Industry and Government HIGHER EDUCATION INSTITUTES
Collaborative Agreements signed with the a number of Universities and one of the key objectives is to equip students with experiential learning:
University of Johannesburg (UJ) University of Stellenbosch (US) Nelson Mandela Municipal University (NMMU) – Development of Advanced Diploma in
Renewable Energy (ADRE) Cape Peninsula University of Technology (CPUT) University of Limpopo (UL) Durban University of Technology – SLA signed for the establishment of Clean Energy
Education and Empowerment Mobile Training and Development Unit. The Unit to offer the following:
• Short courses on installation and Maintenance of Solar Water Heaters• Equipment demonstrating how solar energy works and to make school pupils
aware of alternative and renewable energy• Address marketing/branding of products of DUTs including energy related
offerings• Address community engagement programmes of which some respond to energy
sector
Placement and working relationship with Industry and Government CIVIL SOCIETY
1) SOUTH AFRICAN NATIONAL APEX OF COOPERATIVES (SANACO)
Collaborative Agreement signed with SANACO in 2013 Service Level Agreement has been signed with SANACO to implement phase
two of project involving 175 unemployed learners and 50 cooperatives in all the provinces excluding Gauteng and Western Cape.
The project is NQF 2 Learnership on Electrical Engineering
2) IPHUPHU INVESTMENTS (PTY) LTD 500 Military Veterans supported in a Solar Heating Installation skills
programme
3) FASEGO 350 unemployed youth in North West Province supported in a Solar Heating
Installation skills programme
Placement and working relationship with Industry and Government CIVIL SOCIETY
4) QAKASA MANAGEMENT SERVICES
100 unemployed youth in Gauteng supported in Electrical Engineering Learning Programme
5) WEST RAND YOUTH DEVELOPMENT (WRYD)
100 unemployed youth in Gauteng Province supported to participate in Solar Heating Installation skills programme
6) DESMOND TUTU LEADERSHIP CENTRE (DTLC)
100 unemployed youth in the Mpumalanga Province to participate in the Solar Water Heater Installation skills programme
Placement and working relationship with Industry and Government CIVIL SOCIETY
7) ELDOS WOMEN IMBOKOTO
50 unemployed youth supported to participate in the Electrical Engineering National Certificate Vocational Certificate programme
20 unemployed youth supported to participate in the Electrical Engineering Artisan Programme
5) GRADUATE PLACEMENT PROGRAMME
10 graduates supported to be placed on the Electrical Engineering WIL programme
What gaps in terms of skills to serve the SA energy sector has the SETA identified, including key and critical skills, and what is currently being done at the SETA to address this?
One of the major problems currently in the South African skills development environment is that the identification of scarce skills does not appear to be supported by a factual, evidence led enquiry. Thus, the nature of skills needs and ‐the quantum skills imbalances in the labour market are often misdiagnosed, misunderstood and mistreated.
The following change drivers in the Energy Sector were identified: Renewable Energy Strategy, green issues, skills shortages in electricity management and civil engineering, Strategic Integrated Projects, and unemployment.
The President launched the Strategic Integrated Projects (SIP’S) of which there are three Energy SIP’s that we need to respond to
24
What gaps in terms of skills to serve the SA energy sector has the SETA identified, including key and critical skills, and what is currently being done at the SETA to address this? cont…
SIP 8: Green energy in support of the South African economy
Support sustainable green energy initiatives on a national scale through a diverse range of clean energy options as envisaged in the Integrated Resource Plan (IRP2010) and support bio-fuel production facilities.
SIP 9: Electricity generation to support socio-economic development
Accelerate the construction of new electricity generation capacity in accordance with the IRP2010 to meet the needs of the economy and address historical imbalances. Monitor implementation of major
projects such as new power stations: Medupi, Kusile and Ingula.
25
What gaps in terms of skills to serve the SA energy sector has the SETA identified, including key and critical skills, and what is currently being done at the SETA to address this? cont…
SIP 10: Electricity transmission and distribution for all
Expand the transmission and distribution network to address historical imbalances, provide access to electricity for all and support economic development.
Align the 10-year transmission plan, the services backlog, the national broadband roll-out and the freight rail line development to leverage off regulatory approvals, supply chain and project development capacity.
26
What gaps in terms of skills to serve the SA energy sector has the SETA identified, including key and critical skills, and what is currently being done at the SETA to address this? Cont…
Skills Gap
Six occupation categories were identified as key drivers of the SIP’s
Professionals and Associates Professionals
Most professions identified as priority professions for delivering the SIP’s are associated with the planning, design, development, operations and maintenance of the projects.
Clerical and Support Workers
In the context of the SIP’s two support occupations which required specific attention. They are project administrators and store persons.
27
What gaps in terms of skills to serve the SA energy sector has the SETA identified, including key and critical skills, and what is currently being done at the SETA to address this? Cont… Trades (Artisans)
The greatest occupational demand for the SIP’s is trades, the current artisans in the labour market will need to be replaced by the year 2020 as they are aging.
Addressing the projected shortfall of artisans has now become a national priority.
The Medium Term Strategic Framework for 2014-2020 has brought forward the National Development Plan target of 30,000 qualified artisans per annum by 2030 to 2026.
Operators
A number of these operators have been listed as scarce with respect to delivering of the SIP’s.
The scarcity articulated by industry refers largely to experienced operators the majority of are over 45.
28
What gaps in terms of skills to serve the SA energy sector has the SETA identified, including key and critical skills, and what is currently being done at the SETA to address this? Cont…
Elementary Occupations
Elementary and non trade production workers cover occupations which requires elementary knowledge and experience to perform routine tasks using hand tools and considerable physical effort.
Elementary construction occupation workers perform a variety of general labouring and construction duties to assist building, civil engineering and related trade workers in the performance of their tasks. Training is typically provided in informal workbased settings and formal short courses or skills programmes.
29
What gaps in terms of skills to serve the SA energy sector has the SETA identified, including key and critical skills, and what is currently being done at the SETA to address this? Cont… Managers
The Public Service is responsible for macro socio-economic policy making on infrastructure and the architect of an enabling environment for national development.
Public Service management covers such aspects of management as productivity management, professional and technical, management of human, financial and other resources.
It involves range of activities ranging from planning, formulation and implementation of policies, programmes and projects for the delivery of goods and service to the nation through a number of government and quasi- government institutional arrangements.
Developing management capacity requires more than attendance of one or two short courses.
In terms of building a capable state, management in the public sector must be strengthened.
30
What gaps in terms of skills to serve the SA energy sector has the SETA identified, including key and critical skills, and what is currently being done at the SETA to address this? Cont… EWSETA has responded to the DHET call for commitments to SIP priorities and
will be placing strategic focus on the funding of learning programmes that respond to these SIP priorities through our Sector Skills Plan and Discretionary Funding process
Development of Occupational Qualifications that are on the critical scarce skills list:
Energy Audit Technician and Energy Management Advisor
Continuous collaboration with Higher Education Institutions for curricular development (EWSETA / NMMU development of an Advanced Diploma in Renewable Energy)
31
What is currently being done at the SETA to prepare SA for the proposed energy expansion programmes? Renewable Energy Centre of Excellence (RECE)
In responding to the skills needs for alternative energy the EWSETA has launched a Renewable Energy Centre of Excellence in Upington in the Northern Cape Province.
Green Skills Development Strategy
South Africa has embarked on a major policy drive to invest in a green economy. Within the overall concept of sustainable development, green economy refers to a market economy system that is oriented towards ecological sustainability, economic profitability and social inclusion.
32
What is currently being done at the SETA to prepare SA for the proposed energy expansion programmes? Green Skills Development Strategy (Cont…)
The green economy has the potential to be a new engine of growth, a net generator of decent jobs and a vital strategy to reduce poverty. South Africa’s New Growth Path of 2010 identifies the green economy as one of the key sectors for employment creation with a potential of creating 300 000 additional direct jobs by 2020.
The skills development sector plays an essential role in the transition to a green economy.
The aim of the strategy is to provide a coherent framework that supports the development of required skills for greening South Africa’s energy sector.
33
What is currently being done at the SETA to prepare SA for the proposed energy expansion programmes? Energy Research
Equitable Energy and Water for all Baseline Study
Decentralising energy production and service delivery (water, energy, sanitation and waste management) taps into the essence of the challenges facing South Africa as a country today.
Strategically, it mitigates our energy poverty, with service delivery and job creation as pillars that underpin the advancement of the socio-economic agenda to the benefit of all South Africans.
Creating pilot projects within areas where problematic supply exists, more specifically in rural and urban spatial frameworks.
34
What is currently being done at the SETA to prepare SA for the proposed energy expansion programmes? Prediction of Future Energy Scenarios
Also through partnering and funding the University of Johannesburg, the EWSETA commissioned the above study incorporated in its Northern Cape strategic intervention.
With a particular focus on the Northern Cape Province and the renewable energy (RE) and energy efficiency (EE) industries, this study details the current career pathways specific to South Africa, forecasts the skills demand up to 2030 and concludes with a skills development plan.
Thus motivating relevant training of scarce skills for the implementation of RE and EE specific training programmes within local TVET colleges.
35
What is currently being done at the SETA to prepare SA for the proposed energy expansion programmes? Partnerships
TVET Colleges – Provincial Spread
5
2
11
31
3
2
4
Eastern CapeFree StateGautengKwazulu NatalLimpopoMpumalangaNorth WestNorthern CapeWestern Cape
36
PARTNERSHIPSTVET COLLEGES
TV
ET
Co
lleg
es
Eastern Cape-Buffalo City Public FET College-Eastcape Midlands College-Ingwe FET College-Lovedale FET College-Port Elizabeth College
Free State-Flavius Mareka-Motheo FET College
Kwazulu-Natal-Umfolozi FET College
Limpopo-Letaba FET College-Sekhukhune FET College-Vhembe FET College-Capricon FET College
Mpumalanga -Gert Sibande FET College
North West-Orbit FET College-Taletso FET College-Vuselela FET College
Northern Cape -Northern Cape Rural FET College-Northern Cape Urban FET College
Western Cape-Boland FET College-College of Cape Town-South Cape College-West Coast FET College
Gauteng-Ekurhuleni West College
37
What is currently being done at the SETA to prepare SA for the proposed energy expansion programmes? Government Agencies• Gauteng City Region Academy (GCRA)• Ehlanzeni District Municipality• Vhembe District Municipality• Department of Energy• Department of Water and Sanitation• Department of Public Works• Northern Cape Provincial Government• Eastern Cape Provincial Government• Department of Human Settlements • Municipal Infrastructure Support Agency (MISA)• South African Qualification Authority• Rustenburg Local Municipality• Camdeboo Local Municipality• Impendle Local Municipality
38
Strategic Engagement
CEO’s visit to Moscow (Nuclear)
During a recent study visit to Moscow the CEO visited the Russian State Atomic Energy Corporation “ROSATOM”.
ROSATOM has presence and operations on 5 continents and more than 40 countries. The key segments are: uranium enrichment, new NPP (nuclear power plant) construction, Russian electricity generation (25.2 GWe installed capacity), integration within its structure is the utility which operates 2nd biggest NNP fleet in the world.
The safe and mature VVER technology of ROSATOM is one of the most referenced in the world and in terms of its global fleet, has constructed 68 and operating 55 NNP’s globally. All Russian designed reactors, including 37 VVER units operating outside of Russia, successfully passed stress-tests, among those are 18 VVER units in 5 EU countries supported by ROSATOM. At the moment, there are another 30 NNP‘s in progress, 20 in a tendering process/negotiations and 32 potential projects.
What is currently being done at the SETA to prepare SA for the proposed energy expansion programmes?
39
What is currently being done at the SETA to prepare SA for the proposed energy expansion programmes? CEO’s visit to Moscow (Cont…)
In terms of its key activities ROSATOM has presence in mining, gas centrifuges manufacturing, conversion and enrichment, fuel fabrication, NNP’s engineering and construction, power generation, O&M, service, electricity trading, spent nuclear fuel treatment, power equipment and services, research and development.
ROSATOM offers a unique integrated NNP construction solution: energy solution, industrial solution, financial solution, safety solution, knowledge/skill/human capital solution, as well as regulation, infrastructure and public acceptance solutions.
ROSATOM has extended no less than 20 state-funded scholarships for undergraduate and deserving South African students to study at their facilities in Moscow.
40
What is currently being done at the SETA to prepare SA for the proposed energy expansion programmes? CEO’s current visit to the Netherlands
In line with the EWSETA Strategy to engage International Partners to support and inform our skills development and training initiatives in the EW Sector including: sourcing alternative funding, research and development, infrastructure and technology best practice and implementation, the CEO will be meeting with a number of key stakeholders in the Energy Sector
Some of these stakeholders include: SANEC (South African Netherlands Chamber of Commerce) Caudrilla (leading company in natural gas exploration and hydraulic fracturing) IRO (Association of Dutch Suppliers in Oil and Gas Industry – Members cover all
activities involved in the supply industry, such as engineering, field development, pipeline installation, maintenance, manufacturing and material & equipment supply, onshore as well as offshore)
Wind Energy Solutions (leading company in wind turbine manufacturing with more than 1.000 units installed worldwide)
Shell – with Shell’s plans to implement Hydraulic Fracturing in SA, a partnership needs to be finalized in terms of localising skills required for their programme
41
What is currently being done at the SETA to prepare SA for the proposed energy expansion programmes? South Africa Oil and Gas Alliance (SAOGA) (Oil and Gas)
The South African Oil & Gas Alliance is a public-private partnership with around 170 member companies who are dedicated to developing the upstream supplier base in South Africa.
SAOGA has established Marine, Oil & Gas Academy (MOGA) is to facilitate coordination of the various skills initiatives from industry, government and training
MOGA will nurture an enabling environment for human capital development in the Marine, Oil & Gas sectors in South Africa.
Skills Summit Saldanha Bay On 17 & 18 March 2015, EWSETA will host the first EWSETA Skills Summit in Saldanha
Bay, the economic hub of the Oil & Gas sector.
42
A discussion on some of the challenges identified at the SETA and how are these being addressed?Challenge Solution
The one critical challenge is inadequate funding to carry out our mandate for skills development.
EWSETA is engaging both national and international partners to source alternative funding
Another serious challenge is the misalignment of funds from employers in the energy and water sector, whose levies go to other SETA’s (MerSETA, CHIETA)
A high level intervention from DHET or the PCoE will assist to ensure that fund allocation to SETAs is correctly aligned
Access to workplaces for learners as industry do not want to take on the responsibility for the learners
Sector Collaboration Branch focussing on Industry partnerships for WIL
Insufficient number of training providers (public) offering energy qualifications
Research being conducted to inform EWSETA strategy
Renewed focus on Nuclear Energy Qualification development strategy
Scaling up of successful regional projects due to lack of funds
Sourcing of funds from strategic partners for national implementation of successful regional projects
Delay in implementation of approved projects by implementing agents
Internal Project Management Unit to monitor and evaluate project implementation
43
“Greatness is not where we stand, but in what direction we are moving....we must
sail, sometimes with the wind, sometimes against it, but sail we must, and not drift nor
lie at anchor.”
- Oliver Wendell Holmes, Sr. (1809-1894)American physician, poet, professor, lecturer, author, and medical reformer.
CONCLUSION
44
