Our Burning Planet

POWER CRISIS

Ramaphosa energy plan reaction — ‘devil is in the details and how it is implemented’

Ramaphosa energy plan reaction — ‘devil is in the details and how it is implemented’
From left: Coal delivery trucks outside Eskom's Kusile Power Station. (Photo: Waldo Swiegers / Bloomberg via Getty Images) | President Cyril Ramaphosa. (Photo: Siyabulela Duda / GCIS) | Solar panels at a generation facility. (Photo: Unsplash) | Wind turbines at the Umoya Energy wind farm in Hopefield, Western Cape. (Photo: Dwayne Senior / Bloomberg via Getty Images)

After President Cyril Ramaphosa’s announcement of an energy action plan, several stakeholders — from those in civil society to organised business and academia — commented on the government’s new plan to end rolling blackouts and transform the electricity sector in South Africa.

On Monday 25 July, President Cyril Ramaphosa announced an “energy action plan” that promised the potential to end rolling blackouts and fundamentally transform the electricity sector in South Africa. Broadly well received, stakeholders representing academia, the energy sector and the environmental lobby have, however, expressed cautious optimism.

Gaylor Montmasson-Clair, senior economist at Trade & Industrial Policy Strategies — a non-profit, economic research institution — told Our Burning Planet that “overall, I think it is a strong plan given the difficult circumstances that SA is in at the moment. The devil will be in the details and in how it gets implemented.

“In effect, plant maintenance, energy efficiency and renewable energy (with storage) are the key anchors of the plan. These are the right elements to relegate load shedding to a thing of the past as soon as possible and set SA on the road to a reliable, clean and affordable electricity supply,” said Montmasson-Clair.

“Importantly, the plan aims to rapidly ramp up the rollout of renewable energy technologies in the country, at the utility, commercial/industrial and residential levels. That is really positive and will hopefully underpin energy sustainability as well as local industrial development.” 

Read in Daily Maverick: “Get a load of this – these South African cities have a plan to ditch Eskom and end power cuts”

‘Most fundamental reforms in 20 years’

Roger Baxter, CEO of the Minerals Council South Africa, said in a statement: “President Ramaphosa outlined a detailed plan by the government to abolish the 100MW licensing cap on private sector renewable energy projects, ensure greater private sector participation to urgently install electricity generation capacity, address Eskom’s R400-billion debt and its internal crime and corruption problems, and streamline regulatory processes by eliminating red tape. This represents the most fundamental reforms of South Africa’s energy sector in 20 years. 

“Overall, we rate this plan as very good for its boldness and for recognising that the private sector, along with fixing the reliability of Eskom, is the solution to energy security going forward. The Minerals Council and its members, which are already active in coming up with solutions, are ready to play their part. 

“The president and Cabinet recognise that we have a fundamental energy crisis and that there can be no more tinkering around the edges. This is a comprehensive overall reform plan, with the private sector playing a critical role in ensuring South Africa’s energy security into the future. We support this bold and ambitious plan,” said Baxter.

More attention to storage ‘vital’

Prof Patrick Bond from the University of Johannesburg was more tepid in his analysis: “What we might term ‘non-invasive storage’ was not addressed. Instead of lithium dependency, it’s much more useful to consider pumped storage (small hydropower) in appropriate locations and molten salt. 

“To really get off fossil fuels properly, and to have a national and regional system that modulates the different weather variables, more attention to storage is vital.”

Asked what some potential obstacles to achieving any of the planned actions might be, Bond replied: “People focus on coal-addicted or wannabe methane-addicted politicians like Gwede Mantashe, Cyril Ramaphosa or Valli Moosa, which is undeniable. Behind them, though, is the so-called ‘minerals energy complex’ which has become darker in complexion due to ‘pass-the-trash’ coal sales by Glencore, AngloCoal and South32 to BEE billionaires in recent years. 

“A full-cost accounting that accounts for ‘stranded assets’ properly would be a great leap forward.”

Bond added that “Ramaphosa promises more renewables, which is great — although prices have soared thanks to the energy crisis following Russia’s invasion of Ukraine. But state-owned generation — a so-called ‘Green New Eskom’, as activists term their aspiration — was missing”.

The Green New Eskom plan, developed by the Climate Justice Coalition (CJC), a South African grouping of civil society, grassroots, labour and community organisations, describes as its central demand “a rapid and just transition to a more socially owned, renewable, energy powered economy, providing clean, safe, and affordable energy for all, with no worker and community left behind in the transition”, which would include seeing that the utility moves away from coal-fired power plants and instead invest more heavily in renewable energy generation.

Embrace of renewables, feed-in tariffs ‘welcome’

Dr Alex Lenferna, climate campaigner at 350Africa.org and secretary of the CJC, said: “The president’s energy plan recognises that renewable energy holds the key to tackling South Africa’s energy and climate crises. While there are significant concerns about several elements of the plan, its embrace of a renewable energy future is welcome.

“Of course, coming up with a plan is the easy part… implementing it will be the difficult part, particularly as Minister Mantashe’s Department of Mineral Resources and Energy failed to deliver on the last emergency energy plan.”

Greenpeace Africa’s Climate and Energy campaigner, Thandile Chinyavanhu, said “Greenpeace Africa applauds the announcement of feed-in tariffs. We have been calling for this for some time. It allows South Africans — who are able — the opportunity to meaningfully contribute to the end of load shedding.

“After years of campaigning, we welcome the decision to remove the arbitrary threshold for renewable energy generation. South Africa has not even begun to exhaust its renewable energy potential, and this is a big step towards that end,” said Chinyavanhu.

“We also know that there is massive potential for job creation in a just transition to renewable energy, and South Africa’s unemployed youth are eager to join the workforce.

“The President must keep people and the planet in mind. Stabilising our energy system and safeguarding our environment are not mutually exclusive; renewable energy is the answer to both the energy and climate crises. South Africa has the opportunity to lead the world out of fossil fuel dependence, and this won’t be achieved by continued reliance on fossil fuels,” said Chinyavanhu.

Potential flaws

A statement by the World Wildlife Fund South Africa (WWF) said that while “in general WWF feels that the plan is a strong means of taking the country out of our current electricity crisis and laying the pathway for future development, we would like to caution against some potential flaws.

“We urge firstly that the waiver of regulations around installation of energy infrastructure should not encompass environmental considerations, since there can still be significant impacts on biodiversity.”

Khungeka Njobe, environmental programme head at WWF, said “the strategic environmental assessment for grid infrastructure and the Renewable Energy Development Zones does indicate areas of potentially low impact, but waiving environmental considerations can result in long-term problems that it would be best to avoid.

“The mooted call for fossil gas infrastructure is concerning, as is the mention of ‘mobile generators’, which we are concerned may include the invidious Karpowerships.

“Whilst WWF concedes that hydrocarbons are a potential long-term energy storage mechanism, they are not needed until we have a very high renewable penetration in the electricity system, by which time costs of other grid management options, like green hydrogen, would have fallen further.

“Moreover, while fossil gas may have a short-term role for peaking generation, when compared to the price certainty of batteries, it represents both a financial risk and a certain climate impact that we must avoid.”

James Reeler, a senior climate specialist at WWF, said “South Africa’s commitment under the Paris Agreement requires a phase-out of fossil fuels, and the potential to lock in emissions from fossil gas infrastructure could both undermine this goal and damage our economy as the rest of the world starts introducing real border carbon adjustment mechanisms.

“To this end, we recommend that we accelerate the development of a new IRP that better reflects the reality of the energy sector and our international climate commitments. The near-term electricity crisis plan must not lock in fossil fuels, and we must bear this in mind both at present and as we shape the new energy future for our country. We look forward to the effective roll-out of this plan,” said Reeler. OBP/DM

Gallery
Absa OBP

Comments - Please in order to comment.

  • Jimbo Smith says:

    #10 Point Plan is the easy part. Frogboiler has consistently talked and promised endlessly about multiple #”Plans” but action and delivery falls short just about every time. The one critical component of this #10 Point Plan is for a detailed monitoring and reporting process to be put in place. This latest plan needs a Report Card otherwise it will get lost in the wind. The toxic reaction of the Unions is worrying!

  • Glyn Morgan says:

    Thanks By Ethan for this well put-together article. It is hugely supportive of Ramaphosa’s “energy action plan”. That paragraph ““The mooted call for fossil gas infrastructure is concerning, as is the mention of ‘mobile generators’, which we are concerned may include the invidious Karpowerships.” Is possibly the “devil in the detail” that we must all be on the lookout for. I smell a rat!

  • Marko V says:

    Does anybody actually believe the ANC government will not totally botch this?

  • Brennan Williams says:

    Dr Frans Cronje, the former CEO of the IRR talking to Alex Hogg in a BizNews interview –
    “We do not have an energy solution for South Africa and Mr Ramaphosa did not announce one this week”

  • Patrick Dowling says:

    While WESSA welcomes the frank assessment by the president of the energy crisis in South Africa and the urgent need to to deploy new and upscaled renewable energy generation, we note with concern the continued flurry of exploratory activity around gas and oil on and offshore. The dissonance between what the presidential climate commission is saying (and sounding urgent warnings about) and the continued long-term attachment to fossil fuels the Department of Minerals and Energy appears to be encouraging, needs to be resolved in order to provide more credible policy certainty. We fully endorse the repurposing of mothballed coal-fired electricity generation plants for solar, wind and stored energy facilities as well as the invitation to more citizens, businesses and municipalities to become clean energy providers. Due attention still needs to be paid to associated environmental impacts of such new activities.

Please peer review 3 community comments before your comment can be posted

A South African Hero: You

There’s a 99.8% chance that this isn’t for you. Only 0.2% of our readers have responded to this call for action.

Those 0.2% of our readers are our hidden heroes, who are fuelling our work and impacting the lives of every South African in doing so. They’re the people who contribute to keep Daily Maverick free for all, including you.

The equation is quite simple: the more members we have, the more reporting and investigations we can do, and the greater the impact on the country.

Be part of that 0.2%. Be a Maverick. Be a Maverick Insider.

Support Daily Maverick→
Payment options