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Ramaphosa pitches SA's energy transition to municipalities

26 Aug 2024

President Cyril Ramaphosa outlined a strategic vision for South Africa’s energy sector at the inaugural Just Energy Transition (JET) Municipal Conference held at Gallagher Convention Centre. Ramaphosa emphasised the critical role that municipalities will play in driving the country’s transition to a low-carbon, climate-resilient economy, and called for a collaborative effort to ensure that the transition is both inclusive and just.

The just energy transition is a cornerstone project of the Ramaphosa administration.

Ramaphosa highlighted the dual challenges and opportunities presented by the global shift towards low-carbon economies.

"Rapid, sustainable, and inclusive economic growth is a central priority of the Government of National Unity," he said, stressing that "low-carbon, climate-resilient development is central to achieving this inclusive growth."

The newly ascended Electricity Regulation Amendment Act is a catalyst for a brighter energy future from the Ramaphosa administration.

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South Africa’s heavy reliance on fossil fuels, however, pose significant risks, not only to the environment but also to the economy and society at large.

Municipalities own and operate approximately half of South Africa’s electricity distribution grid and “need to be in the driving seat when it comes to providing clean, affordable energy to communities, businesses, and industry.”

Key conference

One of the key outcomes expected from the conference is the establishment of the JET Municipal Forum, which will play a crucial role in coordinating efforts at the local government level.

Ramaphosa referenced the recent signing of the Electricity Regulation Amendment Act, which paves the way for a new, competitive electricity market in his address.

"The reforms contained in the law must help to speed up decarbonisation,” explained Ramaphosa.

“But more than that, they must result in a better deal for households and businesses."

Financial and technical challenges

Sustainable financing for electricity infrastructure is another critical area of focus and the president acknowledged the need for massive investment to upgrade, modernise, and extend the municipal grid system.

"The energy generation of the future requires systems that are fundamentally different in terms of design, capability, and operation."

Ramaphosa assured attendees that the government is working on financing solutions, including concessional loans and private sector investment, to support these necessary upgrades.

We must ensure that the energy transition does not contribute to energy poverty. It must not deepen inequality.

He also called for strengthening the capacity of municipalities to manage the transition, emphasising the need for extensive training and upskilling.

"New systems will be required to identify human resource, technical capacity, and other needs within municipalities," he said.

The president is also advocating for the adoption of best practices in the design and implementation of energy transition projects.

Ensuring a just transition

Nobody is left behind is the unofficial slogan of the Ramaphosa administration and the president was again clear that the energy transition must not exacerbate existing inequalities or contribute to energy poverty. He stressed the importance of sustaining and expanding the free basic electricity subsidy for indigent households, stating.

"We must ensure that the energy transition does not contribute to energy poverty. It must not deepen inequality."

Ramaphosa also raised concerns about protecting new energy infrastructure from criminal activities and ensuring that local businesses and communities benefit from the rollout of new energy sources.

He called for municipalities to consider these realities and address them through informed public campaigns and community engagement.

Empower workers

Ramaphosa reaffirmed the need for a just transition that empowers workers, marginalised communities, and black businesses.

He called for supportive policies, good governance, and a coordinated effort among all relevant institutions to achieve the defined outcomes of the just energy transition at the municipal level.