South Africa has struggled to keep the lights on for more
than a decade. The country’s aging coal power plants have fallen into
disrepair.
Resources set aside for fixing the infrastructure have been
squandered. The national electricity utility Eskom is rife with corruption and
mismanagement stemming from the tenure of former President Jacob Zuma.
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The result is rolling blackouts, known locally as load
shedding, that have crippled the economy.
Eskom officials have recently warned of even higher
blackouts ahead of winter arriving in June. Increased power outages could see
South Africans without power for up to 16 hours in a 32-hour cycle.
A sad story and a warning to the world
This is a sad story of isolated government mismanagement.
But it also has international dimensions that climate change and governance
policy makers worldwide should follow closely.
According to many analysts and politicians in South Africa,
the power crisis is a self-inflicted wound.
This is a sad story of isolated government mismanagement. But it also has international dimensions that climate change and governance policy makers worldwide should follow closely.
Under Zuma, Eskom was turned into a virtual piggy bank for
corrupt officials who would drain the utility’s coffers of taxpayer money
earmarked for vital repairs. In recent years, power plants have been the scene of diesel theft as Eskom has used diesel
generators as a backup for the aging coal plants.
Historic power outages
The result is historic power outages. Eskom interim
CEO Calib Cassim said the power utility had about 47,500
megawatts of installed capacity but could only use 26,500 megawatts due to
plant breakdowns. Thus, Eskom must resort to various levels of power outages
known as stages to make up the deficit.
The country is bracing for the record high level of “Stage
8” power outages, severely impacting businesses and people’s daily lives.
“It is going to be quite hard for businesses to survive when
we go beyond Stage 6. We already see that at Stage 6 load-shedding the impacts
are quite dire — prolonged periods at Stage 8 will be devastating,” Business
Unity SA environment, energy and climate manager Happy Khambule told Business Day.
Ironically, South Africa has sizable deposits of coal.
Aside from the horrific environmental toll of burning coal, South Africa could
have some form of energy independence if it could weed out its corruption and
mismanagement problems.
In addition to coal and other mineral deposits, South Africa
has bountiful wind and solar energy reservoirs. The amount of wind energy just
off the coast of Cape Town is virtually limitless given the power and
regularity of storms in the South Atlantic.
The problem is building the infrastructure required to
harness the power. Infrastructure problems can be resolved with capital, but
South Africa faces systemic legislative and political barriers to unlocking its
renewable energy reserves.
The city of Cape Town’s ongoing battle with the national
government is emblematic of the challenges facing South Africa and other
countries. National legislation in South Africa is outdated and designed to
protect state-owned entities such as Eskom.
Regressive laws struggle to get renewable energy running
Until last year, it was against the law for private
producers to generate more than 100 megawatts of electricity. The
result was a virtually nonexistent renewable energy sector at scale. President
Cyril Ramaphosa has since rolled back these regressive laws, but renewable
energy has struggled to get off the ground regarding large-scale
projects.
That could soon change as Cape Town recently announced a
major solar and battery storage project to generate more
than 60 megawatts and shield the city from at least one load-shedding stage.
The city is also exploring ways to purchase power from small producers and
households using solar energy.
This model has worked in places like California but has
never been tested in South Africa due to legislative blocks.
The country is bracing for the record high level of “Stage 8” power outages, severely impacting businesses and people’s daily lives.
While Cape Town is securing renewable energy sources, the
South African government is debating the use of offshore power ships from Turkey to ease the power
crisis. Even this temporary measure to give the country much-needed power while
considering a long-term solution has been mired in mismanagement and
chaos.
South Africa’s energy crisis is one of the clearest examples
of the hostile role government can play in the renewable energy transition.
Put simply, the national government worries that it will
lose its monopoly on energy production if it allows businesses and individuals
to fully embrace renewables.
This dynamic is bound to repeat in countries worldwide as
renewable energy production costs continue to fall, and more people can outfit
themselves with solar panels or wind power.
With the COP28 climate conference set to take place in Dubai
this fall, the details of South Africa’s energy crisis should be top of mind
for all those involved and concerned about an equitable renewable energy
future.
Not only should foreign governments and companies look to
help South Africa in its quest for large-scale renewable energy (there is ample
business opportunity, after all), but policymakers should listen closely to the
internal debates about the shift to renewables.
Even countries with ample natural resources face political
hurdles and government mismanagement in delivering power to businesses and
individuals. Without power, delicate social relations are at risk in many
societies worldwide.
Joseph Dana is the former senior editor of Exponential View,
a weekly newsletter about technology and its impact on society. He was also the
editor-in-chief of emerge85, a lab exploring change in emerging markets and its
global impact. Twitter: @ibnezra
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