Energy futures in South Africa

Many African countries face an energy crisis. Power is inaccessible, unaffordable and unreliable for most people, trapping them in poverty. Also, Covid-19 has increased the triple challenges of unemployment, poverty and inequality.

The central argument of this paper is that the problem of poverty, unemployment and inequality in South Africa can be solved partly by a transition to renewable energy (RE). It claims that RE policy has been ineff ective and makes seven sets of recommendations: investing in energy infrastructure; technology transfers; improving access to electricity on a large scale; boosting cross-border power trade; improving the performance of existing utility companies; creating regional energy value chains; and helping countries chart low-carbon growth paths. Understanding where the opportunities for tapping this wealth exist and where shortages occur is fundamental to developing these solutions but, until now, this kind of information has not been exploited (UNEP2017). In addition, access to sustainable and affordable energy services is a crucial factor in reducing poverty in developing countries (Terrapon-Pfaff n et al. 2014). Several studies also indicate that the creation of regional energy value chains fosters development since they contribute to job-creation and poverty-reduction benefits. Winkler (2005) notes that investment in renewable energy (RE) and energy efficiency is important to reduce the negative economic, social, and environmental effects of energy production and consumption in South Africa.

Currently, renewable energy contributes relatively little to primary energy, and even less to the consumption of commercial energy. The purpose of this paper is to provide an analysis of the available literature and data on the development of renewable energy in South Africa and to suggest policy options for achieving the objectives. The paper is organised as follows: Section two examines South Africa’s energy sector. Section three discusses the drivers and opportunities for renewable energy deployment in South Africa. Section four identifi es the challenges of RE deployment in South Africa. This section is followed by a discussion of strategies and policies for RE deployment in South Africa (section fi ve). Section six covers the policy proposals for RE in South Africa, followed by a discussion on the creation of regional energy value chains as a strategy for RE development(section seven). Section eight discusses the steps and measures being taken by South Africa to support green coal policies. Section nine discusses the role of gas in renewable energy transition. This section is followed by section ten, which explores Southern countries’ experiences in transiting to renewable energy, and section eleven provides some concluding recommendations.

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