South Africa’s electricity crisis: clearer prioritisation and coherence needed
Summary
The document examines South Africa's 2014 five-point plan to mitigate electricity shortages, which includes emergency measures, cogeneration, gas substitution, coal independent power programmes, and nuclear and renewable energy exploration. It highlights a lack of clarity in government prioritisation of energy sources and notes that private sector confidence is waning, as evidenced by companies like Sibanye Gold Limited seeking energy independence. The author argues that the government must update the Integrated Resource Plan (IRP) 2010-2030 and provide a transparent assessment of the financial viability and suitability of different energy sources, particularly regarding the high costs and long lead times associated with nuclear and coal investments.
Key insights
- The South African Cabinet adopted a five-point plan on 10 December 2014 to address electricity supply constraints, managed by a technical 'war room' involving multiple government departments. The plan's five intervention areas include emergency measures for Eskom, harnessing private sector cogeneration, substituting diesel with gas, launching a coal independent power programme, and exploring nuclear and renewable energy options alongside demand management.
- Private sector confidence in the government's ability to resolve electricity constraints is declining, leading some companies to pursue energy independence. For example, Sibanye Gold Limited intends to invest in solar power and coal-fired plants to generate between 200 and 600 MW of electricity.
- There is a lack of transparency and clarity regarding how the government prioritises different energy sources based on commercial viability and financial implications, especially given the 2015 budget's fiscal constraints. While independent power producers (IPPs) offer market-driven advantages and private finance, the government has not sufficiently encouraged them.
- The government's nuclear procurement strategy, involving agreements with the United States, South Korea, Russia, France, and China, is criticised for its high cost and long lead times, which may conflict with the Integrated Resource Plan (IRP) 2010-2030 and goals for a cleaner energy future.
- The government has announced plans to add 800MW of electricity via private sector cogeneration agreements, with further negotiations expected to conclude by mid-2015.
Cite the original document
- APA
- South African Institute of International Affairs (2015). South Africa’s electricity crisis: clearer prioritisation and coherence needed. https://saiia.org.za/research/south-africas-electricity-crisis-clearer-prioritisation-and-coherence-needed/
- Chicago
- South African Institute of International Affairs. South Africa’s electricity crisis: clearer prioritisation and coherence needed. 2015. https://saiia.org.za/research/south-africas-electricity-crisis-clearer-prioritisation-and-coherence-needed/.
- Wikipedia
- {{cite report |author=South African Institute of International Affairs |title=South Africa’s electricity crisis: clearer prioritisation and coherence needed |date=14 April 2015 |url=https://saiia.org.za/research/south-africas-electricity-crisis-clearer-prioritisation-and-coherence-needed/ |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{southafricaninstituteofinternationalaffairs2015south, author = {{South African Institute of International Affairs}}, title = {{South Africa’s electricity crisis: clearer prioritisation and coherence needed}}, institution = {South African Institute of International Affairs}, year = {2015}, month = apr, url = {https://saiia.org.za/research/south-africas-electricity-crisis-clearer-prioritisation-and-coherence-needed/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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