A new energy future for South Africa: The political ecology of South African renewable energy

Renewable energy remains a contested topic in South Africa. This paper argues that South Africa can build on the momentum surrounding its introduction of a feed-in tariff by enacting policies that may, if given adequate funding and political effort, allow the country to be a world leader in renewable energy. Given a variety of renewable energy policy options for moving forward, a majority of stakeholders consulted in this study strongly prefer the development of a renewable energy manufacturing cluster, in which government develops coordinated policy mechanisms that attract renewable energy manufacturers, over three other policies suggested by the authors. Interviews with key informants that play critical roles in this decision-making process suggest that there are reasons to remain cautiously optimistic about the country's renewable energy future while cognizant of the challenges that must still be overcome. Opportunities for a low carbon renewable energy transition in South Africa include the prevalence of broad stakeholder consultation, facilitated by civil society, and an innovative policy development context. Significant impediments also exist, however, and include pervasive social issues such as poverty and political inertia, along with the ongoing difficulties facing renewable energy technologies in reaching grid parity with inexpensive and abundant South African coal.     

Improving the institutional structures for disseminating energy efficiency in emerging nations: a case study for energy agencies in South Africa

Emerging nations are typically characterised by highenergy intensities despite significant energy efficiency potentials and numerous project oriented efforts to introduce energy-efficient technologies. The paper argues that successful technology dissemination needs appropriate institutional structures to reduce the related transaction cost. While a project-by-project approach risks to evaporate after completion, an energy agency would allow to bundle the know-how and information gained, ease access to funding and thus reduce information search cost and increase availability of efficient technologies. In a case study for South Africa, we examine the appropriateness of this concept for emerging nations. We discuss the underlying incentive problem from a new institutional economics perspective and suggest an approach to the design and implementation of operable energy agencies.     

Grappling with a half-hearted policy: The case of renewable energy and the environment in South Africa

Integrated resource planning (IRP) of power generation and delivery characterized by higher penetration of distributed energy resources (DERs) has taken the 21st century world by storm. It promises power markets that are more resilient to resource and capital cost uncertainties as well as environmental sustainability. The success of this new paradigm has been largely anchored by decisive support policy mechanisms and good implementation. But while the developed and emerging economies are registering phenomenal growth in their renewable energy industries, South Africa would appear to be caught in a time warp with a weak environment policy and a power sector that continues to plan its future in the traditional way. The consequences are continued environmental degradation and a high-energy intensive economy with intermittent power supplies.     

The economics of wind energy in South Africa

Battery charging and water pumping has been the only applications for wind energy in South Africa till now. A conservative estimate of the wind resource indicates that approximately 5% to 6% of the South African energy demands can be supplied from wind. However the low cost of electricity due to the abundance of cheap coal has made it difficult to justify the use of grid connected wind turbines. As with other countries where wind energy is now a part of the total energy package, South Africa will also have to go through a process of wind energy having to prove itself as a viable option while at the same time have a cost disadvantage.     

The status of low energy architecture in South Africa

South Africa has an ideal climate for low energy building, but also has a well established coal industry contributing to very cheap electricity. The energy intensity is high with a substantial proportion being used to render buildings habitable in an ideal climate for passive design. Coal is largely used for space heating leading to severe pollution. A new housing drive offers an ideal opportunity to address the neglected area of low energy in South African housing. Dramatic energy savings and peak demand reductions have been modelled and proven experimentally.     

Energy efficiency,security of supply and the environment in South Africa: Moving beyond the strategy documents

Energy efficiency is one of the most potent and cost effective ways of meeting the demands of sustainable development. It has in fact been referred to as the best energy resource. Way back in 2005 the South African Department of Minerals and Energy (DME) published its Energy Efficiency Strategy in support of some of the objectives enlisted in the 1998 White Paper on Energy Policy. The Strategy set a national target for energy efficiency improvement of 12% by 2015 against the baseline year 2000. The document further predicted that, with a business as usual model of energy usage, at the projected rate of national economic development, there would be a need to invest in new power generating capacity by around 2007. Despite the policy foresight and seemingly enthusiastic efforts, though, the dawn of 2008 saw the country gripped in an electric power crisis, with a capacity shortfall of over 10%. This paper looks at what could have gone wrong, examines energy efficiency policies and measures in other countries and how these lessons could be adopted to the South African context.     

Renewable energy and the environment in South Africa: A way forward

The need to mitigate the adverse environmental impacts of fossil fuel usage, the volatility of fuel prices and enhancement of national energy security, have largely driven a phenomenal growth, around the world, in renewable energy (RE) generation (particularly grid-connected), over the past two decades. The necessity to apply policy support instruments to promote the dissemination of these technologies is now a universally accepted norm. Different countries and societies depending on the prevailing socio-economic environment draft and apply their policy frameworks differently and debates abound as to which mechanisms should have been most suitable under which circumstance. Most of these debates, however, assume the existence of an intrinsic political environment in favour of the process. In South Africa the current political environment is not very conducive to the development of a sustainable RE industry. This paper explores some of the anomalies and barriers and suggests possible options for a way forward to a viable RE industry in the country.     

Renewable energy in South Africa: Potentials,barriers and options for support

The challenge of transforming entire economies is enormous; even more so if a country is as fossil fuel based and emission intensive as South Africa. However, in an increasingly carbon constrained world and already now facing climate change impacts South Africa has to reduce greenhouse gas emissions intensity soon and decidedly. The South African electricity sector is a vital part of the economy and at the same time contributes most to the emissions problem. First steps have been taken by the South African government to enhance energy efficiency and promote renewable energy, however, they fail to show large-scale effects. This paper seeks to identify the relevant barriers to renewable energy investments and, based on experience from other countries, provide policy recommendations.     

Governance and political consumerism in Finnish energy policy-making

The research task in the study was, firstly, to analyse citizens’ perceptions of the power structure underlying Finnish energy policy-making. Secondly, we analysed the role of civil society in the energy sector, addressing the question whether Finns feel that they can influence energy policy-making as citizens through general elections (civic participation) or as consumers via their own consumption choices (political consumerism). Methodologically, the study was based on postal survey conducted in 2007 among a random sample representing 18–75-year-old Finns (N=4000). According to the views expressed, the innermost core of the influence structure of Finland's energy policy-making today comprises only the Cabinet and Parliament, while the second circle is composed of energy-producer firms and big firms. The European Union, the Ministry of the Environment and the Ministry of Trade and Industry belong to the third circle of influence. The power relations in Finland's energy sector have continued particularly stable since the late 1980s despite the liberalization and globalization of the energy markets. In order to influence energy policy-making, citizens consider their own consumption choices more useful than voting in elections or contacts with MPs, authorities and energy-producing companies. The least useful devices are radical environmental activism and participation in mass demonstrations.     

Economic and geopolitical dimensions of renewable vs. nuclear energy in North Africa

Addressing issues of renewable energy in North Africa must incorporate concerns regarding the compatibility of energy mixes with the nature of political regimes, their geopolitical relevance, and their socio-economic effects, in addition to economic cost-benefit deliberations. One important and under-researched aspect of nuclear energy refers to the trade-off between socio-economic development and political power conservation. Competing interests in North Africa's energy market as well as aspects of regional cooperation capacity are important when assessing the choice between renewable and nuclear energy. Therefore, the future course of meeting North Africa's energy needs is subject to a complex political and economic interplay between domestic and geopolitical development interests. The objective of this paper is to explore this complexity in more detail. We argue that the identification of any energy alternative as superior is hardly convincing unless certain standards of inclusive governance are met. We also find that it is important to highlight political–economic differences between energy importers like Morocco and Tunisia and energy exporters like Algeria, Libya, and Egypt.     

Promoting regional energy co-operation in South Asia

Energy is a key ingredient of the socio-economic development of any region. South Asia is not only one of the fastest growing regions in the world; it is also one of the poorest, which thus puts energy at the very heart of the development process in the region. This paper looks at the challenges faced by the South Asia sub-region for economic co-operation (SASEC) comprised of Bangladesh, Bhutan, India and Nepal, and also at the role of greater regional energy co-operation therein. The region is characterized by pressures of growing economies and increasing population. While the per capita energy consumption is one of the lowest in the world, energy intensity continues to be very high. A large portion of the population lacks access to modern sources of energy and depends on traditional sources that are not only inefficient but also have severe health and environmental problems associated with them. Increasing oil import dependency and huge investment needs for energy market development pose a further challenge. The region has a good resource potential and tremendous scope for energy co-operation, which can play a key role in addressing many of these energy security concerns and in putting it on the path of sustainable development. It is ironic that the record in the area has been so limited and that too in the most basic form of co-operation, i.e. bilateral arrangements between countries. This paper puts forth a multi-pronged strategy for sub-regional energy co-operation encompassing softer options aimed at confidence building to more substantial and larger scale co-operation efforts. Delays in decision making to ensure stronger and mutually beneficial co-operation efforts are associated with high costs not only to the energy sector but also for the entire development agenda. With the precarious energy situation in the region and unprecedented increases in international oil prices seen in recent times, it is high time for policy makers, financing institutions, NGOs and the civil society to push for a greater integration of the SASEC energy sector.     

Managing energy demand through transport policy: What can South Africa learn from Europe?

For years, the world has enjoyed the luxury of inexpensive transport fuels, resulting in the continuous expansion of transport demand and vast improvements in mobility levels. The threat of peak oil and other environmental concerns, however, are forcing a paradigm shift in terms of transport planning. In recent times, many developed nations have been investigating alternative ways and means of weaning themselves off oil as the main transport energy source and managing transport energy demand. South Africa is a developing nation that, in terms of transportation technology and policy, lags behind developed countries. This presents South Africa with the opportunity to learn from other countries’ triumphs and mistakes and to skip over obsolete investment patterns and ineffective policy. It needs to be determined what South Africa can do to bend the stream of continuously growing transport (energy) demand, without hampering growth in mobility. Solutions can potentially be found by looking at the European Union’s past and present situation and responses. This paper summarises various European energy management transport policies. These policies are translated into a South African context—pros, cons and implementation viability are identified.     

Political will and collaboration for electric power reform through renewable energy in Africa

Climate change, in particular rainfall variability, affects rain-dependent agriculture in Africa. The resulting food shortages, in combination with rising population and lack of access to electricity needed for development, require the governments and people of Africa to consider renewable energy sources. One example that has high potential in Africa is solar energy. Many African governments have begun discussions about renewable energy but tangible results have yet to materialize. This research contributes to the governmental efforts by presenting the solar electricity potentials for some African cities. Using photovoltaic geographical information system (PVGIS) data, it is clear that there is enough electricity for urban and rural dwellers if there is political will and if the solar panels are mounted at the suggested optimal angles ranging from 8–34°. The solar irradiation at all sites was higher than the typical daily domestic load requirement of 2324 Wh/m² in urban and rural areas. We provide a strong rationale for political will, collaboration and transparent energy policies that will ensure that life is enhanced through the use of environmentally-friendly renewable energy technologies such as solar power.     

The economics of renewable energy expansion in rural Sub-Saharan Africa

Accelerating development in Sub-Saharan Africa will require massive expansion of access to electricity—currently reaching only about one third of households. This paper explores how essential economic development might be reconciled with the need to keep carbon emissions in check. We develop a geographically explicit framework and use spatial modeling and cost estimates from recent engineering studies to determine where stand-alone renewable energy generation is a cost effective alternative to centralized grid supply. Our results suggest that decentralized renewable energy will likely play an important role in expanding rural energy access. However, it will be the lowest cost option for a minority of households in Africa, even when likely cost reductions over the next 20 years are considered. Decentralized renewables are competitive mostly in remote and rural areas, while grid connected supply dominates denser areas where the majority of households reside. These findings underscore the need to decarbonize the fuel mix for centralized power generation as it expands in Africa.     

Aggregate electricity demand in South Africa: Conditional forecasts to 2030

In 2008, South Africa experienced a severe electricity crisis. Domestic and industrial electricity users had to suffer from black outs all over the country. It is argued that partially the reason was the lack of research on energy, locally. However, Eskom argues that the lack of capacity can only be solved by building new power plants.The objective of this study is to specify the variables that explain the electricity demand in South Africa and to forecast electricity demand by creating a model using the Engle–Granger methodology for co-integration and Error Correction models. By producing reliable results, this study will make a significant contribution that will improve the status quo of energy research in South Africa.The findings indicate that there is a long run relationship between electricity consumption and price as well as economic growth/income. The last few years in South Africa, price elasticity was rarely taken into account because of the low and decreasing prices in the past. The short-run dynamics of the system are affected by population growth, tooAfter the energy crisis, Eskom, the national electricity supplier, is in search for substantial funding in order to build new power plants that will help with the envisaged lack of capacity that the company experienced. By using two scenarios for the future of growth, this study shows that the electricity demand will drop substantially due to the price policies agreed – until now – by Eskom and the National Energy Regulator South Africa (NERSA) that will affect the demand for some years.     

Electricity consumption and economic growth in South Africa: A trivariate causality test

In this paper we examine the causal relationship between electricity consumption and economic growth in South Africa. We incorporate the employment rate as an intermittent variable in the bivariate model between electricity consumption and economic growth—thereby creating a simple trivariate causality framework. Our empirical results show that there is a distinct bidirectional causality between electricity consumption and economic growth in South Africa. In addition, the results show that employment in South Africa Granger-causes economic growth. The results apply irrespective of whether the causality is estimated in the short-run or in the long-run formulation. The study, therefore, recommends that policies geared towards the expansion of the electricity infrastructure should be intensified in South Africa in order to cope with the increasing demand exerted by the country's strong economic growth and rapid industrialisation programme. This will certainly enable the country to avoid unprecedented power outages similar to those experienced in the country in mid-January 2008.     

Regional cooperation on energy in South Asia: Unraveling the political challenges in implementing transnational pipelines and electricity grids

Political challenges are arguably the biggest constraint to the realization of regional energy projects in South Asia, an issue that has impeded cooperation despite the existence of substantial economic incentives. Although challenges such as technical difficulties, financial constraints and bureaucratic inefficiency are important, they are essentially subsidiary issues, the solutions to which are held hostage by often mentioned but rarely examined political impediments. While existing accounts of political obstacles in contemporary literature are relatively abstract, this paper draws on interviews with government officials, academics, representatives of regional institutions and officials of multilateral development banks in Bangladesh, Nepal, Pakistan and India to get insights into their experience of possibilities for and limitations to energy cooperation. By synthesizing the findings of interviews with relevant literature, this paper undertakes a systematic analysis of the political challenges to regional energy projects and provides a number of policy recommendations to overcome these impediments.     

Disaggregate energy consumption and industrial production in South Africa

This paper tries to assess the relationship between disaggregate energy consumption and industrial output in South Africa by undertaking a cointegration analysis using annual data from 1980 to 2005. We also investigate the causal relationships between the various disaggregate forms of energy consumption and industrial production. Our results imply that industrial production and employment are long-run forcing variables for electricity consumption. Applying the [Toda, H.Y., Yamamoto, T., 1995. Statistical inference in vector autoregressions with possibly integrated processes. Journal of Econometrics 66, 225–250] technique to Granger-causality, we find bi-directional causality between oil consumption and industrial production. For the other forms of energy consumption, there is evidence in support of the energy neutrality hypothesis. There is also evidence of causality between employment and electricity consumption as well as coal consumption causing employment.     

光电能及其效益

南非目前正开展一项崭新而雄心勃勃的计划－改善偏远农村地区的能源供应状况。该计划的一个重要组成就是授予７家私营协营体特许权,分别在不同地区安装３５万台家用太阳能光电系统。该项计划对于农村地区能源发展具有突破性的意义。