The Just Energy Transition Framework as a solution to resolve load shedding in South Africa

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Date

2024

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University of the Witwatersrand, Johannesburg

Abstract

This study examines the Just Energy Transition (JET) Framework as a response to South Africa's persistent load-shedding crisis. Due to aging infrastructure and limited generation capacity, the need to decarbonize and ongoing power cuts necessitate a shift towards renewable energy. Launched in 2022, the JET Framework aims to facilitate a transition from coal and fossil fuels. It seeks collaboration with Independent Power Producers (IPPs) to achieve this goal, with initial funding of USD 8.5 billion secured through concessional loans. While initial cost estimates amount to $98 billion, historical trends suggest potential price increases as the project progresses. The research holds significance in light of South Africa's current challenge of reconciling its energy demands with environmental sustainability and social equity. A structured study can facilitate identifying and assessing feasible solutions for an equitable energy transition. A comparative research design analysed secondary data from 20 documents associated with countries aligned with the Paris Agreement. The data was sampled using non-random selection, collected through desktop research, and analysed using the document analysis technique. The study results suggest the JET Framework's potential to address load shedding, is contingent upon sufficient funding, skilled labour, effective management, a political will, and policy certainty. However, challenges remain, including resistance to coal dependence reduction, the socio-economic impact of closing coal plants, and implementation bottlenecks within the National Energy Crisis Committee (NECOM) initiatives. In conclusion, South Africa faces ongoing challenges in achieving energy security and decarbonization goals. Addressing these obstacles and fostering a cohesive energy policy based on scientific and economic analysis is crucial for a successful energy transition. The Energy Action Plan's progress in sourcing 6000 MW additional capacity to meet electricity demand demonstrates the potential of private sector involvement.

Description

A research report submitted in fulfillment of the requirements for the Master of Business Administration, In the Faculty of Commerce, Law and Management, School of Wits Business School, University of the Witwatersrand, Johannesburg, 2024

Keywords

UCTD, Just Energy Transition, Load Shedding, Energy Mix, Energy Efficiency

Citation

Mondalamo, Sibongile Greetar . (2024). The Just Energy Transition Framework as a solution to resolve load shedding in South Africa [Master`s dissertation, University of the Witwatersrand, Johannesburg]. WIReDSpace. https://hdl.handle.net/10539/46001

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