This chapter examines recent developments in the South African electricity sector. The largely co... more This chapter examines recent developments in the South African electricity sector. The largely coal-fired sector accounts for 45 per cent of the country’s greenhouse gas emissions and is dominated by the state-owned monopoly utility Eskom. Since the introduction of private power producers in 2011, investment in utility scale renewable energy projects has started to make a small but significant contribution to supply, providing competitive alternatives to Eskom generation. The chapter outlines how electricity policy is embedded within long-standing political and economic forces, and subject to diverse and often conflicting interests. The chapter develops an analytical framework that links the literature on socio-technical transitions with that of the political economy of electricity. The South African case highlights that energy transitions are not merely about technological choices, but are embedded in institutional arrangements that may have unintended consequences or may be borne of broader political struggles that go beyond climate change considerations and indeed may limit the potential for transformation of the sector.
South Africa has become one of the leading destinations for renewable energy investment with an e... more South Africa has become one of the leading destinations for renewable energy investment with an estimated R193 billion already committed. But there are question marks over how successful the programme has been in balancing the demands of financial and commercial soundness, and requirements of economic development and community co-ownership.
Coal-dependent South Africa is currently facing its worst electricity crisis in 40 years. Load sh... more Coal-dependent South Africa is currently facing its worst electricity crisis in 40 years. Load shedding, or planned outages, which have been taking place regularly across the country since mid-2014, are now predicted to last until 2018. With the country’s reserve margin on a knife-edge, approximately a quarter of the population - 12.3 million people - lack access to electricity. South Africa’s energy-intensive industrial users consume over 40 per cent of the country’s electricity.
Renewable energy procurement (REP) is gaining increasing importance globally as a policy instrume... more Renewable energy procurement (REP) is gaining increasing importance globally as a policy instrument in driving energy diversification and sustainable development agendas, yet little is known about the institutional dynamics of how these policies evolve and integrate with broader energy sector reform agendas. In this paper, we discuss the institutional changes and interactions between REP policies and electricity sector reforms in China, South Africa, and Ethiopia. We argue that, for newly industrialised and developing countries, REP is embedded in the complexity of long-term sectoral reforms to serve various policy goals such as improving energy access and energy security, enhancing governance efficiency, or attracting private investment, along with assisting the transition to a modern and sustainable energy system. The introduction of REP into the prevailing energy system will inevitably impact on existing actor networks, institutional arrangement, and configurations of power and interest among key public and private entities, particularly when it involves foreign investors and newly established regulatory entities. Therefore, REP should not be viewed as a mere technical instrument: rather, it has the potential to destabilise the current political establishment and institutions in perspective countries. To be successful, REP must be designed to suit the specific historical and institutional context of a country and maintain a considerable level of flexibility to accommodate potential alternations as sectoral reforms proceed. This forward-looking strategy will inevitably demand strong state capacity in designing and implementing REP
This chapter explores key processes within South Africa’s electricity sector that evolved under t... more This chapter explores key processes within South Africa’s electricity sector that evolved under the presidency of Jacob Zuma from his inauguration in 2009 until he was forced out of office in early 2018. These processes include the introduction of a national planning process for electricity; the implementation of a procurement program for privately generated renewable electricity; and a highly controversial nuclear procurement program, since scrapped following Zuma’s departure. The chapter’s exploration takes place within the context of a decade of “state capture” and corruption. Drawing from a wide range of literature on South Africa’s energy policy, it advances perspectives of the “minerals-energy complex” (Fine and Rustomjee 1996), which has been a dominant framework for the analysis of the country’s political economy and its electricity sector. The chapter concludes with a research agenda that brings together the literature on sociotechnical transitions with that of analyses of ...
Developing countries are increasingly using auctions for the procurement of utility-scale renewab... more Developing countries are increasingly using auctions for the procurement of utility-scale renewable electricity, due to the potential for attracting private investment. However, auction design and implementation can face serious obstacles due to complex context-specific factors. In 2017, Ethiopia launched its Public–Private Partnership (PPP) policy and procurement framework to promote infrastructure development, including electricity generation. Since 2018, it has organised renewable energy auctions to procure new capacity from independent power producers (IPPs). However, the new framework faces numerous challenges. Using a literature review and primary data from more than 70 interviews and from stakeholder consultations, this study explores the political economy challenges and opportunities facing IPP project preparation, decision-making, coordination and implementation, and risks to investors. To date, Ethiopia has held two rounds of tenders to procure 1,000 megawatts (MW) of elec...
South Africa’s coal-dominated electricity sector, a key feature of the country’s minerals-energy ... more South Africa’s coal-dominated electricity sector, a key feature of the country’s minerals-energy complex, is in crisis and subject to change. This offers potential opportunities for decarbonisation. Despite positive examples of decarbonisation in South Africa’s electricity sector, such as a procurement programme for renewable energy, there are structural path dependencies linked to coal-fired generation and security of supply. Decarbonisation goes far beyond what is technologically or even economically feasible, to encompass a complexity of political, social and economic factors. Meanwhile, decision-making in electricity is highly politicised and lack of transparency and power struggles in the policy sphere pose key challenges. Such power struggles are reflected in national debates over which technologies should be prioritised and the institutional arrangements that should facilitate them.
China is now a global leader in renewable energy production,an important player in development fi... more China is now a global leader in renewable energy production,an important player in development finance and climate change diplomacy, and the world’s largest provider of energy finance. Meanwhile, in recent years, South Africa has emerged as a regional leader in renewable energy development following the launch of its renewable energy independent power producers’ procurement program (RE IPPPP). In this paper we explore the different modes of involvement of Chinese companies in South Africa’s solar PV and wind energy sectors, and how the differentiated technological and industrial trajectories of Chinese companies are interacting with South Africa’s unique national context. In doing so we reveal complex interactions between evolving market dynamics, and international and domestic factors in both China and South Africa. Such dynamics, which may at once be political, technical, economic and social, include the highly globalized nature of production chains in wind and solar PV, accompani...
This chapter examines recent developments in the South African electricity sector. The largely co... more This chapter examines recent developments in the South African electricity sector. The largely coal-fired sector accounts for 45 per cent of the country’s greenhouse gas emissions and is dominated by the state-owned monopoly utility Eskom. Since the introduction of private power producers in 2011, investment in utility scale renewable energy projects has started to make a small but significant contribution to supply, providing competitive alternatives to Eskom generation. The chapter outlines how electricity policy is embedded within long-standing political and economic forces, and subject to diverse and often conflicting interests. The chapter develops an analytical framework that links the literature on socio-technical transitions with that of the political economy of electricity. The South African case highlights that energy transitions are not merely about technological choices, but are embedded in institutional arrangements that may have unintended consequences or may be borne of broader political struggles that go beyond climate change considerations and indeed may limit the potential for transformation of the sector.
South Africa has become one of the leading destinations for renewable energy investment with an e... more South Africa has become one of the leading destinations for renewable energy investment with an estimated R193 billion already committed. But there are question marks over how successful the programme has been in balancing the demands of financial and commercial soundness, and requirements of economic development and community co-ownership.
Coal-dependent South Africa is currently facing its worst electricity crisis in 40 years. Load sh... more Coal-dependent South Africa is currently facing its worst electricity crisis in 40 years. Load shedding, or planned outages, which have been taking place regularly across the country since mid-2014, are now predicted to last until 2018. With the country’s reserve margin on a knife-edge, approximately a quarter of the population - 12.3 million people - lack access to electricity. South Africa’s energy-intensive industrial users consume over 40 per cent of the country’s electricity.
Renewable energy procurement (REP) is gaining increasing importance globally as a policy instrume... more Renewable energy procurement (REP) is gaining increasing importance globally as a policy instrument in driving energy diversification and sustainable development agendas, yet little is known about the institutional dynamics of how these policies evolve and integrate with broader energy sector reform agendas. In this paper, we discuss the institutional changes and interactions between REP policies and electricity sector reforms in China, South Africa, and Ethiopia. We argue that, for newly industrialised and developing countries, REP is embedded in the complexity of long-term sectoral reforms to serve various policy goals such as improving energy access and energy security, enhancing governance efficiency, or attracting private investment, along with assisting the transition to a modern and sustainable energy system. The introduction of REP into the prevailing energy system will inevitably impact on existing actor networks, institutional arrangement, and configurations of power and interest among key public and private entities, particularly when it involves foreign investors and newly established regulatory entities. Therefore, REP should not be viewed as a mere technical instrument: rather, it has the potential to destabilise the current political establishment and institutions in perspective countries. To be successful, REP must be designed to suit the specific historical and institutional context of a country and maintain a considerable level of flexibility to accommodate potential alternations as sectoral reforms proceed. This forward-looking strategy will inevitably demand strong state capacity in designing and implementing REP
This chapter explores key processes within South Africa’s electricity sector that evolved under t... more This chapter explores key processes within South Africa’s electricity sector that evolved under the presidency of Jacob Zuma from his inauguration in 2009 until he was forced out of office in early 2018. These processes include the introduction of a national planning process for electricity; the implementation of a procurement program for privately generated renewable electricity; and a highly controversial nuclear procurement program, since scrapped following Zuma’s departure. The chapter’s exploration takes place within the context of a decade of “state capture” and corruption. Drawing from a wide range of literature on South Africa’s energy policy, it advances perspectives of the “minerals-energy complex” (Fine and Rustomjee 1996), which has been a dominant framework for the analysis of the country’s political economy and its electricity sector. The chapter concludes with a research agenda that brings together the literature on sociotechnical transitions with that of analyses of ...
Developing countries are increasingly using auctions for the procurement of utility-scale renewab... more Developing countries are increasingly using auctions for the procurement of utility-scale renewable electricity, due to the potential for attracting private investment. However, auction design and implementation can face serious obstacles due to complex context-specific factors. In 2017, Ethiopia launched its Public–Private Partnership (PPP) policy and procurement framework to promote infrastructure development, including electricity generation. Since 2018, it has organised renewable energy auctions to procure new capacity from independent power producers (IPPs). However, the new framework faces numerous challenges. Using a literature review and primary data from more than 70 interviews and from stakeholder consultations, this study explores the political economy challenges and opportunities facing IPP project preparation, decision-making, coordination and implementation, and risks to investors. To date, Ethiopia has held two rounds of tenders to procure 1,000 megawatts (MW) of elec...
South Africa’s coal-dominated electricity sector, a key feature of the country’s minerals-energy ... more South Africa’s coal-dominated electricity sector, a key feature of the country’s minerals-energy complex, is in crisis and subject to change. This offers potential opportunities for decarbonisation. Despite positive examples of decarbonisation in South Africa’s electricity sector, such as a procurement programme for renewable energy, there are structural path dependencies linked to coal-fired generation and security of supply. Decarbonisation goes far beyond what is technologically or even economically feasible, to encompass a complexity of political, social and economic factors. Meanwhile, decision-making in electricity is highly politicised and lack of transparency and power struggles in the policy sphere pose key challenges. Such power struggles are reflected in national debates over which technologies should be prioritised and the institutional arrangements that should facilitate them.
China is now a global leader in renewable energy production,an important player in development fi... more China is now a global leader in renewable energy production,an important player in development finance and climate change diplomacy, and the world’s largest provider of energy finance. Meanwhile, in recent years, South Africa has emerged as a regional leader in renewable energy development following the launch of its renewable energy independent power producers’ procurement program (RE IPPPP). In this paper we explore the different modes of involvement of Chinese companies in South Africa’s solar PV and wind energy sectors, and how the differentiated technological and industrial trajectories of Chinese companies are interacting with South Africa’s unique national context. In doing so we reveal complex interactions between evolving market dynamics, and international and domestic factors in both China and South Africa. Such dynamics, which may at once be political, technical, economic and social, include the highly globalized nature of production chains in wind and solar PV, accompani...
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