Mismanagement, aging and problematic coal infrastructure along with a stalled renewable energy (RE) programme have fuelled regular power cuts since 2007.
According to the new chief executive officer (CEO) Andre de Ruyter, Eskom has set itself a target of 18 months to end the outages and improve the maintenance programme. The Council for Scientific and Industrial Research (CSIR) has pointed out an even larger capacity shortage than put forward by Eskom. If not addressed fast, this could lead to extensive load shedding well into the new decade.
To fill the current electricity gap the Department of Mineral Resources and Energy (DMRE) announced the launch of an emergency programme, the so-called “Risk Mitigation Power Purchase Programme”, through which the government plans to procure between 2000 and 3000 MW from Independent Power Producers (IPPs). The DMRE has stated that they would welcome responses from existing and new projects. What is key and different from previous calls for projects is that the projects can be connected to the grid in the shortest time at the least possible cost. At the State of the Nation Address on the 13 February, Cyril Ramaphosa announced further that “municipalities in good financial standing will be allowed to procure their own power from IPPs.”
Research and modelling projects have shown that the fastest and cheapest way to resolve the supply crisis and stop load shedding is to procure power generated by RE, either from already existing or new projects. The energy crisis demands immediate action coupled with proper planning, and more critically, actions that ensure our electricity system becomes more inclusive and affordable for everyone.
In a study recently published by Project 90 by 2030 (Project 90), a social and environmental justice civil society organisation founded in 2007, the authors urged the South African government to plan and move towards a Just Energy Transition (JET) in South Africa. As a major contributor to climate change, environmental damage and impacts on human health, the current energy sector in South Africa needs to move from coal to RE generated electricity.
What is a Just Energy Transition?
A JET is a highly complex topic. The overall goal is to transition to an energy system that is better for the people and planet, but to do so in an equitable, fair and managed way.
In the study, Project 90 identified five building blocks that are critical to ensure a Just Energy Transition. Firstly, the energy system needs to be accessible and provide affordable electricity for all. Current electricity prices are too high for many consumers. If granted, the most recent request from Eskom for an additional R27-billion to recover costs from the National Energy Regulator South Africa (NERSA), will bring on another electricity price hike this year, hitting the pockets of middle to low-income urban households the most.
Furthermore, South Africa is in urgent need of corporate and business reform mostly related to Eskom, together with a shift in the ownership of energy from privately to more socially/community owned energy projects. Over and above supporting social projects, a JET calls for workers and communities that are currently reliant on the mining sector to be offered skills development and other economic support. The final building block seeks commitment by the government and businesses to carry out environmental restoration and protection of mining-affected areas, as the economic focus of the areas transition away from mining.
Our voices: What is needed for a Just Energy Transition
Consultations with all stakeholder groups are vital in plotting a way forward JET. End of 2019, Project 90 presented their research results from the study, at two multi-stakeholder events in Cape Town and Johannesburg to an audience of representatives from civil society organisations (CSOs), community based organisations (CBOs), community activists, labour representatives, youth representatives and academics.
The discussion showed that the role of labour within an energy transition is critical, but complex. The labour movement in South Africa acknowledges the link between climate change and coal power, and the need for a transition away from the status quo. However, the closure of coal mines and coal power stations without creating alternative opportunities would mean an even greater threat to the livelihoods of workers and their families. The coal industry in South Africa is concentrated in Mpumalanga and parts of Limpopo where the sector is the main source of income for many families. Economic diversification in mining areas is essential in response to the job losses from the mining industry.
Representatives from communities in the Western Cape who do not live and work in mining affected areas were very clear that they want to see more action and less talk. A Just Energy Transition needs to benefit all communities including those that are not located in the coal industrial areas. The energy system has to change. The community members felt that if RE will result in more reliable access to energy and better health, the country should make the change happen and move away from coal to RE as soon as possible.
CSOs have a pivotal role to play in holding the government accountable as the transition progresses. What is currently hampering civil society efforts is a lack of a collective voice. Going forward, agreement within the movement on targeted messages and tasks will be key to mobilising change.
The youth underlined the need for intergenerational justice as part of a just transition – to leave a legacy and a better future for the youth of South Africa. As illustrated in South Africa and globally, the school strikes movement “Fridays for Future” is living proof of just how important an intergenerational just transition is. Having youth at the table to discuss their future and the country that they will inherit is crucial. The future should be environmentally cleaner, economically prosperous, and have greater equality.
The youth representatives felt that moving away from coal to RE will provide jobs and opportunities – especially to young people to become part of the energy industry.
Academics that were part of the discussion, pointed out that the next steps taken are crucial for the success of a Just Energy Transition. South Africans need to identify and agree on a number of priorities. There is an urgent need to look at legislation and policies and to strengthen local institutions.
What are the main challenges for a Just Energy Transition?
All stakeholder groupings identified two challenges that have to be resolved if we want to move towards a JET. Vested interests and excluded voices are an everyday problem when it comes to the drafting and implementation of policy. We need to ask ourselves the following: firstly, how do we get everyone involved in the decision making process and get everyone’s buy-in at the same time? Secondly, how do we deal with vested interests and current power structures that prevent the needed economic system change required to support a new energy system?
Steps towards effective engagement
Inclusive stakeholder engagements are key to an effective public consultation process. If South Africa wants to see the country through a Just Energy Transition it is more important than ever, to hear all urban and rural voices but also to get everyone’s buy in. Many argue to start consultation processes with labour and most affected mining communities but in the end a JET affects everyone in South Africa, so discussions should be open to all stakeholders.
An adequate public consultation has to follow certain steps. Firstly, specific trainings and information sharing sessions need to take place to enable empowered and knowledgeable citizens to partake in the consultation process. The inclusion of under resourced communities is especially important but can be time intensive. As the context of the challenges and issues faced by the communities needs to be firstly established and then related to relevant policy or national strategy, prior to the communities’ involvement in the consultations.
The voice of the youth needs to be taken into account when it comes to the way decision makers discuss the world’s future, and more specifically towards a just transition and climate justice. Youth should not only be active participants in public forums but rather in all facets of the discussion. It is equally important, if not more so, to have youth from middle to low income urban and rural communities to have their say in how best to move forward. Similarly to adult community members, the youth in those same communities need to be educated on the matter at hand and be integrated into talks and given the means to mobilize.
Power dynamics
While there is a lack of effective stakeholder consultation, politically motivated vested interests are another barrier for the process of a Just Energy Transition to take off. Stakeholders at the meeting saw a clear need for academia to undertake a mapping exercise of the existing power dynamics and show where the responsibility lies at the national, provincial and local levels. Equipped with this knowledge, civil society can then work collaboratively with these dynamics to combat vested interests against sustainable economic change.
We cannot underestimate the political context around a JET and continue to exclude certain voices within important political decision making processes. What is urgently needed is a plan that looks at the transition holistically and includes concrete solutions and timelines; a plan that also aims to put vested interests aside and ensure an inclusive all-round transparent process.
