Amid the energy acronyms, EAP is paramount

The release of the Integrated Resource Plan (IRP) 2023 sparked much necessary debate about the future of South Africa’s energy mix. However, with rampant private sector investment pipeline in renewables and the impending shift to a market model, we have to acknowledge the decreasing relevance of an IRP-led section 34 procurement, which has in the past consistently under-delivered against procurement targets in any case.

While the IRP debate will hopefully confirm an energy vision in line with global best practice, we must acknowledge that we are in an energy crisis and so we must be practical and focus on implementation.

South Africa urgently needs to shift to a more integrated view of the energy sector and related reforms as we start to move out of load-shedding. Energy supply mix is only one facet of a future integrated and sustainable energy system. Our real challenges will lie in our ability to deliver modernised and appropriate utility services, reliably meet changing demand profiles, achieve high levels of digitisation, incorporate municipal participation and ensure market and regulatory efficiency.

Energy sustainability is often seen through a narrow lens of environmental sustainability, but true sustainability must also address economic, commercial and societal sustainability. This is not to say supply mix doesn’t matter.

Ending the energy crisis begins in part with fixing what we already have. The reality is that Eskom will have to play an integral role in ending the load-shedding crisis. Improving its energy availability factor (EAF) therefore remains an immediate priority and it is positive to see that a number of the recent VGBE Eskom report recommendations are already being implemented, and that this is resulting in a stabilisation of the EAF performance.

Helping to turn around Eskom’s declining EAF through practical on-theground measures has been one of the major focus areas of the business partnership with the government through the National Energy Crisis Committee (Necom). This recovery work is critical, but we must also recognise that Eskom no longer enjoys a supply-side monopoly and the shift to private power generation has moved into high gear. While rooftop solar will remain buoyant, growth will slow as load-shedding recedes and affordability constraints become a bigger reality (a recent study indicated that only 3% of households can afford to install rooftop solar).

Corporate buyers are leading a rapid increase of investment in utility scale renewables. This is creating significant investment, job creation and a vibrant renewable energy sector.

With parliament in session ahead of elections, it is crucial to maintain momentum and a sense of urgency about passing the Electricity Regulation Amendment Bill. This is the key legislative reform tool enabling implementation of the Energy Action Plan (EAP) and is a critical step towards a modernised and liberalised energy system.

We have already seen progress in actioning reform with the recent appointment of a board for the National Transmission Company of South Africa. The bill will advance this as part of the separation of Eskom’s transmission function from generation and distribution.

Allowing the bill to lapse in this parliamentary term will cause delays in modernising the sector, needlessly prolonging the energy crisis and sending a weak signal to international investors about South Africa’s commitment to a modern, decarbonised energy future.

We must continue to robustly debate the right energy mix, our long-term decarbonisation goals, economic growth, job creation and, most importantly, building skills and jobs. The IRP has a role in this but does not define our energy future.

I believe that we have never had a better opportunity through the EAP and Necom to work as South Africans to focus on implementing a brighter future (and that is not a pun on ending load-shedding).