South Africa’s new government fuels optimism for faster energy transformation

Analysts say South Africa’s energy transition is likely to accelerate after voters forced the ruling African National Congress (ANC) to reach a power-sharing deal for the first time.

President Cyril Ramaphosa on Sunday appointed ministers from his ANC party and the opposition, pro-business Democratic Party (DA) as members of his “national unity government”.

In one of the most significant changes, Ramaphosa wrested control of the energy sector from pro-coal minister Gwede Mantashe. Hilton Trollip, an energy researcher at Cape Town University, told Climate Home that Mantashe had previously “crippled” the government’s renewables program.

The Department of Mineral Resources and Energy has been split in two. Mantashe retains control over mining and hydrocarbons only, while the ANC’s Kgosientsho Ramokgopa, previously electricity minister, will now be responsible for setting energy policy with a broader mandate.

EU “Green” Funds invest millions in emerging coal giants in China and India

Trollip said it was unclear whether Ramokgopa would boost renewable energy sources because he hasn’t had much power so far. But there’s now a better chance he will Mantashe’s highly controversial Integrated Resource Plan – which predicts a slowdown in investment in renewable energy and a shift to gas-powered energy – will be revised, he added.

The DA’s Dion George has been named the new Environment Minister, replacing Barbara Creecy, who has been moved to the Transport Ministry.

Creecy played an active role in several COP climate talks, and most importantly, they were successful proposing global adaptation target for COP26 in 2021

JETP Conversations

Due to its heavy dependence on coal as a source of electricity, the country is the largest energy producer in Africa. largest emitter greenhouse gases.

That made him a leading candidate for the world’s first financing deal backed by rich countries that would aim to boost investment in clean energy while protecting those dependent on the fossil fuel sector.

Yet two and a half years after its announcement, the $9.3 billion Just Energy Transition Partnership (JETP) has made no concrete progress on the ground.

Meanwhile, as the country grapples with rolling power cuts, state-owned utility Eskom has announced plans to delay the decommissioning of at least three of its coal-fired power plants by several years – increasing the risk that financing partners will withdraw their offers.

Kevin Mileham, the DA’s Shadow Minister for Mineral Resources and Energy, told Climate Home that South Africa’s JETP programme “will need to be accelerated” because the country is currently not on track to meet global climate targets.

He added that the party wants to see a “rapid rollout” of the programme, which will require better dialogue with wealthy European and North American countries that fund parts of it.

Mileham said South Africa also wants to accelerate the implementation of its climate change adaptation strategy and believes it needs to better monitor and report on actions it is taking to reduce carbon emissions.

Much of the progress will depend on the government’s ability to form a united front in foreign policy and establish effective relationships with international financial partners.

The ANC and the DA regularly clash on international affairs, for example over the latter’s support for Palestine.

They will have to “reconcile their (foreign policy) differences and come to a common understanding on international multilateral processes,” says Happy Khambule, director of energy and environment policy at Business Unity South Africa, a business lobbying group.

Tensions over the role of the private sector

He added that private companies, which will play a significant role in this transition process, want to see increased policy certainty in the coming months.

The group is waiting for the finalisation of the draft bill to amend the Electricity Market Regulation Act, which is intended to open up the electricity market and end Eskom’s long-standing monopoly, as well as the Integrated Resource Plan.

Comment: Africa cannot afford to be complacent when it comes to managing solar radiation

Meanwhile, the DA’s preference for greater private sector involvement in the energy transition could create new tensions with key stakeholders. Left opponents often derisively call the DA a “neoliberal” party.

The country’s largest trade union, COSATU, wants the recently separated energy department to ““stop the privatization of electricity and energy” and instead promote state and social ownership models.

““We do not expect to see major changes to the just transition, but rather a more focused approach to its implementation, in particular to ensure that workers, communities and value chains are not left behind,” a spokesperson for the organisation told Climate Home.

A just transition should be overseen by multiple government departments, given the “triple crisis” of unemployment, climate change and energy shortages, they added, suggesting for example that The Ministry of Finance should increase spending on public employment programs aimed at climate protection.

(Reporting by Nick Hedley, editing by Joe Lo and Matteo Civillini)