South Africa currently finds itself in an energy crisis that is hampering economic growth and severely disrupting citizens’ lives. The economy will not recover as long as load shedding continues, and there is no sustainable and reliable electricity supply.
The energy crisis should be addressed as follows in the short term:
a) Invest in upgrading and maintaining the electricity transmission grid. It may involve cooperating with the private sector.
b) Amend the relevant legislation to declare electricity theft (including illegal connections) a statutory offence and prosecute illegal electricity consumers.
c) Effectively secure electricity infrastructure to prevent sabotage and cable theft.
d) Encourage a transition to renewable energy sources, such as solar panels, through tax incentives and a nil VAT rate on panels and other components.
e) Finalise the unbundling of Eskom into separate entities responsible for electricity generation and transmission. Eskom should be privatised over the medium to long term, and a competitive energy sector should be established.
Central power supply through concentrated generation units and a nationwide grid should largely be replaced by local power supply and micro-grids. The large-scale transition to renewable energy should be prioritised. Surplus energy generated by private households and businesses should be bought at more competitive tariffs.
The harvesting, storage and transmission of renewable energy should be emphasised. Underdeveloped parts of the country, particularly in the Northern and Western Cape, are perfectly located for an energy revolution. It will, however, require an improved transmission grid.