Dossier: Energy Policy in South Africa
INTRODUCTION2010 has been an eventful year in the energy policy sphere in South Africa.
The National Energy Regulator of South Africa (NERSA) approved steep electricity price increases to be implemented over the next three years. The public power utility Eskom was awarded a US$3bn loan by the World Bank to build the Medupi coal-fired power station, which along with the building of the Kusile power station, ties the country to the use of fossil fuel for the next few decades.
Furthermore, government is working on an Integrated Energy Plan (IEP) and Integrated Resource Plan (IRP), both of which will plot the long term energy future for the country. Government is also in the process of developing a climate change policy which is expected to detail the country’s approach to carbon constrained development.
This dossier sheds light on the current state of energy policy in South Africa. It examines three inter-related issues: the possibility of a low-carbon future, the great energy policy disconnect within government, and the prospects for renewable energy in South Africa.