Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Solly Malatsi seeks out-of-court deal in TV migration fight

      15 July 2025

      South Africa’s telcos battle to monetise 5G as 4G suffices for most

      15 July 2025

      Major new electric car brand launching in South Africa

      15 July 2025

      MTN empowerment investors see ‘modest’ return as Zakhele Futhi winds up

      15 July 2025

      Eskom wants your solar system registered – but what does that actually mean?

      15 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Samsung’s bet on folding phones faces major test

      10 July 2025

      Bitcoin pushes higher into record territory

      10 July 2025

      OpenAI to launch web browser in direct challenge to Google Chrome

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025
    • In-depth

      The 1940s visionary who imagined the Information Age

      14 July 2025

      MultiChoice is working on a wholesale overhaul of DStv

      10 July 2025

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025
    • TCS

      TCS+ | MVNX on the opportunities in South Africa’s booming MVNO market

      11 July 2025

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025

      TCS+ | First Distribution on the latest and greatest cloud technologies

      27 June 2025
    • Opinion

      A smarter approach to digital transformation in ICT distribution

      15 July 2025

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » How SA can get by on less power

    How SA can get by on less power

    By The Conversation12 July 2015
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    eskom-640

    South Africa’s energy sector has faced a crisis since 2008, marked by power cuts, high tariffs and a general inability to match supply and demand. This has led to a dismal picture being painted about the future of the country’s energy supply and its impact on economic growth.

    It is imperative that a solution is found to the current difficult situation. This is because energy plays a vital role in the growth and development of a country.

    A priority for policymakers since the end of apartheid 1994 has been to provide energy to everyone. Since this target has nearly been achieved, the attention is shifting to the intensity of electricity use in South Africa.
    There are three key areas that can lead South Africa towards greater energy efficiency, as well as reductions in carbon emissions. These are:

    • Technological innovations for energy efficiency
    • Promoting structural changes in the economy
    • Changing the energy supply mix

    All these can be combined in national energy policies and strategies, but they differ in two points: the time horizon of the results and the risk of outcomes.

    The introduction of technological innovations that can achieve higher energy efficiency levels depends heavily on the availability and cost of the innovations. It also depends on the receptiveness in sectors where they will be adopted.

    Changing South Africa’s energy supply mix won’t be easy because of the abundance of coal. In addition, and possibly more importantly, the state-owned power utility Eskom’s fleet of power stations runs mostly on coal.

    Equally, the sectors which drive the economy are energy intensive. They are also important sources of employment, investment and income. Historically, the country primarily promoted mega industries that use a lot of energy and are capital-intensive. Until 2008-2009, South Africa’s comparatively low industrial electricity tariffs attracted significant investments in traditionally energy-intensive sectors such as mining and manufacturing.

    These industries are inflexible and slow to change. For example, once a major investment has been made in the construction of a smelter, opportunities to change to more energy-efficient technology or production process are limited.

    The government appreciates the need to reduce the energy intensity of the economy over the long term. This year’s budget made specific mention of the need to promote growth in tradeable and services sectors that consume less electricity per unit of output.

    But it will take more to bring about any meaningful change. To achieve the shift in the economy without affecting output and production, economic and industrial policies should be combined with efforts from energy policymakers.

    It would be helpful to adjust the incentives and tariffs that attract energy-intensive investments. Incentives should be directed to low-emission and low-intensity sectors. By lowering the cost of energy, input costs would come down and South African exports could achieve greater competitiveness.

    Admittedly, the trade-off and eventual balance is difficult and requires financial and political support from various stakeholders. Of critical importance is the co-ordination of various policies. A concerted effort should be made by all government departments involved with South Africa’s economic sectors. This can only be achieved by all-inclusive debate and design over time.

    Eskom-640-2

    The transition from a resource-based economy to a knowledge, service and quality of human capital based economy requires information, education and research and development. Any new strategy therefore needs to include investment in research activities that will show the way to innovative solutions. Areas to be explored could include structural changes in the economy as well as more efficient ways to consume energy.

    In this transition, South Africa should also investigate alternative fuels that will make even the high energy intensive sector’s consumption cleaner and more environmental friendly. For this, a properly planned, organised, managed and monitored market for renewable energies needs to be put in place. This needs to be combined with a comprehensive policy to provide consumers with alternatives to “dirty” fossil fuel-based energy.

    Finally, how else can this transition be promoted? There is one thing that all sectors, industries and firms are interested in — economic gain and profits. Instead of penalising intensive users, which happens with a carbon tax, an alternative would be to incentivise them. This could be done by introducing a reward programme, such as an emissions trading system, or, even more suitable to South Africa, an energy-intensity trading scheme.

    By trading credits of energy-intensive use, the sectoral users would aim to reduce their energy consumption as well as trade their credits for additional profits.

    South Africa is a unique case with a number of inherited socioeconomic challenges and difficulties. But its energy policymakers have started aiming at more fundamental changes rather than the recent short-term solutions.

    Structural economic changes and an effort to shift the economy to sectors with lower energy consumption and a smaller footprint will certainly take more time, and even more funding, to bear positive results. But the impact will be more permanent and sustainable.The Conversation

    • Roula Inglesi-Lotz is associate professor of economics at the University of Pretoria
    • This article was originally published on The Conversation


    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleRegulators reach accord on consumer complaints
    Next Article Disconnecting in the age of distraction

    Related Posts

    Solly Malatsi seeks out-of-court deal in TV migration fight

    15 July 2025

    South Africa’s telcos battle to monetise 5G as 4G suffices for most

    15 July 2025

    Major new electric car brand launching in South Africa

    15 July 2025
    Company News

    Mental wellness at scale: how Mac fuels October Health’s mission

    15 July 2025

    Banking on LEO: Q-KON transforms financial services connectivity

    14 July 2025

    The future of business calling: Voys brings your landline to the cloud

    14 July 2025
    Opinion

    A smarter approach to digital transformation in ICT distribution

    15 July 2025

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.