
By KEDIBONE MOLAETSI
The Republic of South Africa (RSA) president, Cyril Ramaphosa said the rapid, sustainable and inclusive economic growth is a central priority of the Government of National Unity (GNU). Ramaphosa, who delivered his address during the inaugural conference on the role of municipalities in the country’s just energy transition said, a low-carbon, climate resilient development is central to achieving this inclusive growth.
He further said this presents the country with a challenge, but also an opportunity. Ramaphosa added that electricity generated from fossil fuels accounts for most of South Africa’s carbon emissions.
“Because industry is still mainly reliant on power produced by Eskom’s coal-fired power stations, our entire economy is carbon-intensive. As the world changes, our reliance on fossil fuels to industrialise poses a significant risk.
“It poses threats to our economy, society and environment, if we do not drive the energy transition in ways that are appropriate to national and local circumstances. Many of South Africa’s main trading partners are taking measures to achieve net zero within certain timeframes,” he said.
Ramaphosa said this has implications for South African goods and products entering these markets. He said it has implications for economic competitiveness.
“Just as we continue to oppose unilateral and coercive carbon adjustment measures by developed economies, we realise the need to reduce our reliance on carbon intensive energy production. We see the need to diversify our energy sources to grow our economy. There are great prospects ahead if the country takes advantage of the global energy transition to support economic growth, development and employment creation.
“As a signatory to the Paris Agreement, South Africa is committed to contributing its fair share to the global climate change effort. We must pursue this commitment in a manner that delivers just outcomes for those affected by the energy transition. We must pursue it in a way that contributes to inclusive economic growth, energy security and employment,” said Ramaphosa.
He said they must do so at a pace, scale and cost that is consistent with the country’s social and economic development path. According to Ramaphosa, Integrated Resource Plan sets out a viable energy mix over the medium and long term to achieve their decarbonisation objectives.
“We have a successful Renewable Energy Independent Power Producer Procurement Programme. This has attracted over R209 billion in investment and added much-needed capacity to our electricity grid.
“The regulatory changes we introduced in 2021 to increase the licensing threshold for generation projects has resulted in a pipeline of over 130 confirmed projects. This amounts to approximately 22 500 MW of capacity with an estimated investment value of R390 billion,” he said.
Ramaphosa said municipalities are central to the efforts to decarbonise the energy sector. He said municipalities own and operate approximately half of South Africa’s electricity distribution grid and facilitate universal access to electricity.
“One hundred and sixty five municipalities are electricity service providers. Through the Integrated National Electrification Programme grant, municipalities are responsible for addressing the electrification backlog.
“Municipalities therefore need to be in the driving seat when it comes to providing clean, affordable energy to communities, businesses and industry. One of the aims of this conference is to unlock the institutional arrangements required to drive the decarbonisation effort,” said Ramaphosa.