The Energy Transition In South Africa
In light of this essay, there will be discussions on whether the energy transition in South Africa/Africa should we wait for the market or should the state take the lead. Through proper research supported by valid evidence and theory would best indicate which one must be done in terms of this energy transition. This research will be based on economic and political economy issues, where there will be arguments on both sides and it will contain orthodox views and they must be neoclassical. This choice of energy transition will come up with both advantages and disadvantages, but the main point is to come up with the best resolution that will benefit the country. There are lots of debate around this issue as many people who work in the coal industry would lose their jobs if this renewable energy would be in charge of the country, and there are allegations that the renewable energy would need a lot of money to be able to operate.
Renewable energies
According to Mathews and Reinert (2014), they mentioned an increase in productivity may be influenced by many things such as a technological change in one form or another, where the technological process is the same but will produce different types of productivity that will both increase as they occur. On one hand, there is a process which shifts the whole cost curve, and on the other hand, there is increasing returns because the cost diminishes because of the same technology applied. In general, these are impossible to separate in real life because the shifts in the cost curve include the movement along the same curve (they are inseparable). Renewables reduce the effect of carbon emissions that endanger the lives of people and nature, it reduces the fossil fuels that have a negative impact on the planet Earth.
The transition from fossil fuelJim, (2018) talks about trying to enforce the transition from fossil fuel to renewable energy. This may advantage the communities because they would be able to own and control it, but the disadvantage with renewable energy is that many people would lose their jobs in the industry and that would result in the high unemployment rate. According to Jim, (2018) they suggest that to prevent extinction there must be a transition from fossil fuels to renewable energy. Eskom argues that if this transition occurs, then a lot of people would lose their jobs and increase the high number of unemployment and poverty in the country, this would impact the GDP negatively. Jim, (2018) is concerned with the global temperature, which implies that climate change poses a direct threat to the livelihoods of the people, in this case, those who are most affected are the poor ones.
It also argued that the environment and the future of the planet have been sold out because the only thing the capitals are concerned with is that profit must be obtained at all cost. Radebe, (2018) on the decision to decommission coal plant is said to be economic. This implies it would develop the economy if the coal plant would be removed. In 2010 when South Africa experienced a power shortage, the government decided to use alternatives such as renewable energy such as solar. This renewable energy and private sector are an ANC policy. Since ANC is the leading party in South Africa it has much power to convince the government to make the ruling of renewable energy as the best alternative that the communities can take. Although there is a lot at stake because Eskom would have to retrench thousands of people who used to work at the coal stations and that will negatively affect the economy of the country. Although through research this renewable energy makes a lot of money it takes time.
Key Challenges for Renewable Energy in South Africa
According to Bhora et al (2017), there have been threats in developing the country’s renewable energy industries because of delays that Eskom made on refusing to sign over and the manager scandals which includes corruption, this includes the presidency in relation to the nuclear programme. On one hand, Barker et al (2018) asserted that the problem with renewable energy is the cost of making certain that these renewable energies are maintained and sustained, where there is a limited spacer to plant wind and solar resources and as well there is no good condition where they can be planted. The corruption that was made by the Eskom management would currently affect the poor as they would want to increase the price of energy to regain all the money that is lost. Since Eskom is the state-owned monopoly where there are barriers to enter, lastly Eskom is the single buyer of power.
Impact of renewable energy in South AfricaRen 21 (2015) argues that Renewable energy technology has experienced exponential growth such as solar and wind-based systems and there is a hope that in 2030 it will overcome coal-based electricity. Renewable energy reduces the impact of global warming by decreasing the level of the greenhouse effect, since it does not pollute the environment, also it reduces the risk of deforestation of trees and as well reducing the extinction of those trees which are used by coal-power.
Furthermore, alleviates the amount of pollution that also keep people’s health as a priority. Renewable energy in South Africa has helped a lot when the country was mostly affected by load shedding, therefore the industries made use of solar and wind systems to generate renewable energy because businesses would have made a loss it there was no alternative of not using coal. Renewable energy in South Africa has created a healthy and safe environment for the various species including humans and trees. It also conserves the fossil fuels. As much as there are many discussion around the issue of renewable energy of whether should they be in control of the power station. There are obstacles on this matter as the government and state of capture corruption where they support the coal electricity
Rocky Mountain Institute
The Rocky Mountain focuses on five elements in creating change which is empowering clean energy globally, transforming transportation, decarbonizing electricity systems, catalyzing efficient building and advocating areas of innovation. Firstly looking at Empowering Clean Energy globally this institute is aware of the global warming problem. Their main aim is to come out with ways of reducing global warming by working with top government officials to create a blueprint for other isolated economies. They are partnering up with the government to improve electricity access for people who cannot afford and those who are in areas where they have no access to electricity. They also work with countries that are mostly dependent on fossil fuel.
Secondly, they are transforming transportation to make it possible to move goods and people using significantly less consumption of oil to reduce carbon. They are doing this by working together with airports to make sure that the fuel that they are using is tested and deploy sustainable aviation fuels. They are trying to transform countries like the United States of America where they have one big central power plants that burn fossil fuels. They are prioritizing their customers and try to empower those who come from low-income households and communities so that they can easily to access energy efficiency and renewable including the solar. They are also trying to help the mining industries to adopt renewables and get off diesel to reduce carbon emissions and try also to reduce energy costs. They build more productive, safe and healthy buildings where they trying to conserve the planet, this massive market growth of building renewable energy. They are trying to limit as much as coal power plants. Lastly, they are tackling innovative new energy challenges by eliminating methane emissions from oil and gas. In this process, they are also trying to sustain finances.
Conclusion
In conclusion of this essay, in regard to the research and results compiled above, it shows that although the renewable energy would benefit the country as a whole there are many obstacles that make it seem impossible for the renewable energy to be the best alternative to be used in South Africa. Since Eskom is a monopoly it is the only power station that provides the country with the highest percentage of electricity. Now that it is involved in corruption as well as the state of capture it is difficult for the new plants to overcome Eskom because it does not want to sign up for new firms to enter the industry.
In response to the question opposed to whether should the country wait for the market or should the state take the lead? It would be best if the country wait for the state to take the lead because after proper investigations of corruption that is made by the top management of Eskom and the former president of South Africa, the state would be able to propose a ruling of whether the renewable energy should not be taken for granted as they impose low risk of peoples health and the environment compared to the coal power stations. Lastly, there should be ways to come up with a plan on how those thousands of people who would lose their jobs on the coal industry and make certain that the government does not mismanage funds from the budget. This may take a couple of years to implement the renewable energies but there are many job opportunities that would sustain those who would have been retrenched from the coal industry.
