Low-Carbon Electricity Transition

The document outlines the challenges of South Africa's coal-dependent energy system, including environmental externalities and the financial crisis at Eskom. It proposes cancelling further coal Independent Power Producers (IPPs), reforming Eskom's business model to invest in renewables, and increasing the localisation of renewable energy manufacturing. A central theme is the 'just transition,' emphasizing the role of unions and the state in protecting vulnerable workers through re-skilling and social protection. The brief recommends the urgent finalisation of the Integrated Resource Plan (IRP) 2016 and the establishment of a Just Transition Taskforce.

• South Africa's heavy reliance on coal for electricity generation, which accounts for nearly 90% of the mix, results in high global carbon emissions and negative health and environmental impacts, such as air pollution and high water consumption.
• The state-owned utility Eskom is facing a financial and operational crisis driven by debt, demand stagnation, excess supply, and the high capital costs of the Medupi and Kusile coal plant projects.
• While the Renewable Energy Independent Power Producer Procurement Programme (REI4P) has successfully attracted investment and is estimated to create 58,000 jobs in its latest round, it has not yet maximised the localisation of manufacturing or sustained employment beyond the construction phase.
• There is significant potential for localising the manufacturing of renewable energy components; for example, the 27 new REI4P projects could potentially create 1,500 jobs through the local production of solar PV modules, inverters, transformers, and wind towers.
• The document proposes a 'just transition' framework to protect workers in the coal industry, suggesting measures such as re-skilling, a social protection floor, and the use of early retirement and shift-time reduction, citing Germany's IG Bergbau union as a model.
• The brief recommends several urgent policy actions: cancelling further coal IPPs, finalising the Integrated Resource Plan (IRP) 2016, revising legislation to allow municipalities to procure their own energy, and establishing a Just Transition Taskforce housed in NEDLAC.

APA

Naudé, L., & Rivett-Carnac, K. (2018). Low-Carbon Electricity Transition. Institute for Economic Justice. https://iej.org.za/wp-content/uploads/2020/07/Stream-1-Policy-Brief-2c-Low-Carbon-Electricity-Transition.pdf

Chicago

Naudé, Louise, and Kate Rivett-Carnac. Low-Carbon Electricity Transition. Institute for Economic Justice, 2018. https://iej.org.za/wp-content/uploads/2020/07/Stream-1-Policy-Brief-2c-Low-Carbon-Electricity-Transition.pdf.

Wikipedia

{{cite report |last1=Naudé |first1=Louise |last2=Rivett-Carnac |first2=Kate |title=Low-Carbon Electricity Transition |publisher=Institute for Economic Justice |date=August 2018 |url=https://iej.org.za/wp-content/uploads/2020/07/Stream-1-Policy-Brief-2c-Low-Carbon-Electricity-Transition.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{naud2018lowcarbon, author = {Naudé, Louise and Rivett-Carnac, Kate}, title = {{Low-Carbon Electricity Transition}}, institution = {Institute for Economic Justice}, year = {2018}, month = aug, url = {https://iej.org.za/wp-content/uploads/2020/07/Stream-1-Policy-Brief-2c-Low-Carbon-Electricity-Transition.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }