South Africa’s Energy Subsidies Inventory, 2023 Data, Definitions, and References

The report inventories major energy subsidies in South Africa, detailing fiscal support for oil, gas, electricity, coal, and nuclear energy. It highlights a significant increase in total quantified subsidies, reaching ZAR 118,317 million in FY 2022/2023, driven largely by carbon tax exemptions. The document describes specific mechanisms such as VAT exemptions for fuels, Free Basic Electricity for disadvantaged households, and various grants for state-owned enterprises like PetroSA and Eskom.

• Total quantified energy subsidies in South Africa rose from ZAR 37,815 million in FY 2017/2018 to ZAR 118,317 million in FY 2022/2023.
• Exemptions from the carbon tax represent the largest single quantified subsidy in recent years, increasing from ZAR 35,315 million in FY 2020/2021 to ZAR 47,420 million in FY 2022/2023.
• The VAT exemption for gasoline, diesel, and illuminating paraffin is a significant oil and gas subsidy, with a value of ZAR 29,835 million in FY 2022/2023; it assumes that 90% of diesel and 20% of gasoline sales are for business purposes.
• Electricity subsidies include Free Basic Electricity (FBE) for disadvantaged households, which cost ZAR 10,603 million in FY 2022/2023, and the Integrated National Electrification Programme (INEP), which cost ZAR 5,302 million in the same period.
• The South African Nuclear Energy Corporation received 'indirect transfers' (previously named subsidies) totaling ZAR 990 million in FY 2022/2023, though the document notes a lack of transparency regarding the use of these funds.
• Several subsidies remain unquantified due to data gaps, including subsidies for renewable energy technologies, income tax deductions for exploration spending, and PetroSA's ring-fenced grant income for shale gas exploration.
• The state-owned utility Eskom has received repeated recapitalization and bailouts to service debt and fund operational improvements, which the authors categorize as government support rather than a subsidy.

APA

Geddes, A., & Schmidt, M. (2024). South Africa’s Energy Subsidies Inventory, 2023 Data, Definitions, and References. International Institute for Sustainable Development. https://www.iisd.org/system/files/2024-04/south-african-energy-subsidies-annex.pdf

Chicago

Geddes, Anna, and Max Schmidt. South Africa’s Energy Subsidies Inventory, 2023 Data, Definitions, and References. International Institute for Sustainable Development, 2024. https://www.iisd.org/system/files/2024-04/south-african-energy-subsidies-annex.pdf.

Wikipedia

{{cite report |last1=Geddes |first1=Anna |last2=Schmidt |first2=Max |title=South Africa’s Energy Subsidies Inventory, 2023 Data, Definitions, and References |publisher=International Institute for Sustainable Development |date=March 2024 |url=https://www.iisd.org/system/files/2024-04/south-african-energy-subsidies-annex.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{geddes2024south, author = {Geddes, Anna and Schmidt, Max}, title = {{South Africa’s Energy Subsidies Inventory, 2023 Data, Definitions, and References}}, institution = {International Institute for Sustainable Development}, year = {2024}, month = mar, url = {https://www.iisd.org/system/files/2024-04/south-african-energy-subsidies-annex.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }