Sustainable Development: The Case of Energy in South Africa

The document assesses South Africa's energy sector, primarily its electricity supply industry (ESI), through the lens of sustainable development. It analyzes the transition of Eskom from a vertically integrated monopoly to a corporatized entity and the government's efforts to liberalize the market while maintaining social equity. Key findings highlight the environmental burden of coal-dependency, the success of national electrification programs in expanding access to the poor, and the necessity of restructuring the ESI to optimize future investment and integrate renewable energy sources.

• South Africa's energy supply is heavily dominated by coal, which provided 78 per cent of total energy consumption in 1998, leading to high carbon intensity and significant environmental impacts.
• The dominance of coal-based energy has created a market environment that disincentivizes the development of renewable energy and clean technologies.
• South Africa has achieved significant success in expanding electricity access to low-income households, with the proportion of households with access increasing from 32 per cent in 1996 to 70 per cent in 2001.
• The national electrification program demonstrates that social goals and public benefits can be achieved independently of the industry's structural model, as progress was made under both the vertically integrated Eskom and local government distributors.
• Current low electricity prices in South Africa are economically unsustainable because they result from the amortization of 1980s debt and a lack of recent investment in new generation capacity.
• The electricity distribution industry suffers from inefficiencies due to a large number of non-viable municipal distributors, many of which are burdened by debt and lack of technical capacity.
• The South African government is pursuing a 'managed liberalization' of the ESI, which includes the corporatization of Eskom, the establishment of an independent regulator (NER), and the planned introduction of private sector participation in generation.
• South Africa is a major contributor to greenhouse gas emissions, producing one-third of Africa's total energy-related CO2 emissions despite representing less than 1.5 per cent of the global total.
• While nuclear energy accounts for approximately 7 per cent of generation via the Koeberg plant, the development of the Pebble-Bed Modular Reactor (PBMR) is viewed by some as a costly project with uncertain export markets.

APA

Cassim, R., & Jackson, W. (2004). Sustainable Development: The Case of Energy in South Africa. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/tkn_energy_south_africa.pdf

Chicago

Cassim, Rashad, and Wendy Jackson. Sustainable Development: The Case of Energy in South Africa. International Institute for Sustainable Development, 2004. https://www.iisd.org/system/files/publications/tkn_energy_south_africa.pdf.

Wikipedia

{{cite report |last1=Cassim |first1=Rashad |last2=Jackson |first2=Wendy |title=Sustainable Development: The Case of Energy in South Africa |publisher=International Institute for Sustainable Development |date=April 2004 |url=https://www.iisd.org/system/files/publications/tkn_energy_south_africa.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cassim2004sustainable, author = {Cassim, Rashad and Jackson, Wendy}, title = {{Sustainable Development: The Case of Energy in South Africa}}, institution = {International Institute for Sustainable Development}, year = {2004}, month = apr, url = {https://www.iisd.org/system/files/publications/tkn_energy_south_africa.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }