SA’s energy crisis: Grassroots bypassed in favour of benefitting upper class?

For a country that could be one of the world’s fastest-growing economic hubs, South Africa’s economic growth has slumped because of our energy issues.

As a young South African, I am worried about the future.

SA’s energy crisis

It has been more than two months since President Cyril Ramaphosa made an urgent speech to address the country’s deepening energy crisis (and economic crises).

Yet, since then, load shedding has gotten worse and electricity prices continue to increase to unaffordable heights, with economically marginalised communities already having to choose between buying food, other necessities, or electricity.

And sadly, in a blow to the country’s just energy transition efforts, it seems we will not likely see any significant Renewable Energy (RE) generation capacity added to the grid anytime soon.

While we are seeing some movement toward the just transition through the work of the Presidential Climate Commission, the change is not happening fast enough.

The state – through its various departments – should be at the forefront of pursuing the energy transition, which is our best chance to resolve the energy crisis, while also addressing climate change.

Energy projects

This means supporting more energy projects which focus on clean technologies and removing the cap/limits on RE projects.

This is the expected change we want to see, including a clear allocation of embedded generation and subsidisation for communities to install solar panels.

Additionally, financial solutions should be provided for renewable energy across the value chain.

Funds for this can come from the Just Energy Transition programme or Carbon Tax fund.

Energy supply to boost economy

Prioritising the improvement of South Africa’s energy supply is key to unlocking further economic growth and social development.

Therefore, the president’s plans to ramp up renewable energy and storage must be more robust.

In addition to the positive environmental and social spin-offs, which are in line with a just transition, this can arguably lead to successfully addressing the energy crisis.

However, I am concerned about the president’s talk of a single point of entry for all energy project applications to ensure coordination of approval processes across government.

While cutting back on red tape to speed up renewable energy procurement is good news, I believe relaxing local content rules sets a worrying precedent.

ALSO READ: Energy gap: One billion Africans lack access to clean energy

Lack of regulation

It might bring new energy online quickly, but what impacts might be expected from a scaled-back regulatory environment?

And what are the consequences for our communities in terms of the potential for local ownership?

It is critical we ensure local content is strengthened over time as this is where a lot of the job creation and economic empowerment should come from.

Lifting licence requirements for embedded generation will result in increased renewable energy uptake, but without more progressive policies to ensure more renewable generation projects are socially owned, these opportunities will likely be dominated by the private sector.

Who will really benefit?

Consider feed-in tariffs, for instance, which could be a good economic opportunity for grassroots communities that are most in need but since they are less able to afford solar panels.

This will be a benefit almost exclusively available to the middle and upper classes.

I am curious to see how this will work, especially considering that, over the next year, Eskom plans to increase the budget for critical maintenance of its failing and old equipment when it should be extending and updating the grid to include microgrids, which allows decentralised electricity solutions to come online as the power sector globally is shifting toward decentralisation.

Push for gas

Another point of concern is government’s push for gas (as part of a just transition), with the president and the department of mineral resources and energy speaking quite positively about it.

My concern is that this may lock communities into expensive, air polluting and climate change-causing gas.

The silver lining is that gas procurement will only be necessary for later years, from around 2030, buying us time to explore other innovative technologies.

While promises are all good, the question is, will these really be delivered?

Uncertain future

As a young South African, I am disappointed with Eskom, the department of mineral resources and energy and others that have failed before, on so many fronts.

Can you blame me for being sceptical?

I’m not sure we should expect change here, not unless the president somehow manages to get his people working together effectively, which seems like a long shot.

In our communities, the energy crisis is all anyone talks about.

Genuine implementation needed

People want to know exactly how the government plans to ensure the successful facilitation of the Just Energy Transition so that it benefits the social, environmental and economic futures of all South Africans.

Will we see genuine implementation of the plan to ensure it effectively deals with the energy crisis?

And how will these be implemented?

If South Africa hopes to have a successful energy transition, the people on the ground must know where they fit in.

And government must ensure it is, in fact, socially inclusive and leaves no one behind.

Ka Mthembu is a member of ‘Grassroots for Climate Action‘, a community-driven initiative facilitated by Earthlife Africa Johannesburg. It aims to amplify community voices on South Africa’s “just transition”