The crisis in South Africa's energy sector: Towards a just transition centering job creation and social ownership

The paper outlines the history, challenges and potential solutions related to South Africa's electricity crisis. The paper assesses the causes of the crisis, including aging electricity infrastructure, reliance on coal for electricity generation and mismanagement and corruption within Eskom. Additionally, the paper reviews the economic impacts of the electricity crisis, particularly as it relates to the manufacturing sector and also the social impacts which exacerbate the inequalities, with poorer communities facing greater challenges in accessing reliable and affordable electricity. Furthermore, the paper underscores the impact of the electricity crisis on the working class and the broader economy.

Key Findings/Recommendations:

Comprehensive recommendations are made in the paper and they include the following. (1) Protect the viability of the existing manufacturing sector, focusing on strategic sectors that form part of renewable energy system value chains. (2) Ensure that documentation of the Power Purchasing Agreements made between IPPs and Eskom is made public, as well as full details of all the standing Special Tariff Agreements between Eskom and mining and manufacturing companies. (3) Implement tax regulations to discourage the increase in demand for off-grid electrification solutions for businesses, mines, and wealthy households. (4) Combat illicit financial flows by advocating for state reforms to curb illicit financial flows, reserving recovered capital for initiatives benefiting communities affected by extractive industries.

Read online:

https://thetricontinental.org/wp-content/uploads/2021/04/Eng_working-document-SA-Electricity.pdf