But even if Eskom had consistently managed to keep the lights on over the past 15 years, there would still be a strong case for moving to new forms of energy. The utility is, after all, the world’s. In time, that could make it difficult for South Africa to receive investment, particularly from countries and investment funds with strict environmental criteria.
It should be clear then that the current moves to broaden South Africa’s energy mix would always have been a necessity. The difference is that there’s now an unprecedented opportunity to accelerate that transition. But, in order for it to make a positive impact on the lives of most ordinary South Africans, a comprehensive legal framework is critical. Make no mistake, that framework really will be critical.
Such a framework should, therefore, work to ensure that electricity is affordable to all South Africans by ensuring that the electricity energy market remains competitive both for Eskom and private producers. Additionally, it should provide legal clarity on how to achieve a just transition, particularly when it comes to ensuring that workers in the traditional space aren’t left high and dry.
Fortunately, South Africa has a good base to start from on that front. From a policy and regulatory perspective at least, the country’s independent power producers programme with its economic development targets and criteria is widely recognised as being among the best in the world.
Bridgett Majola, Director: Banking and Finance and Head of Project Finance: Energy and Infrastructure at law firm CMS South Africa & Gavin Noeth, Senior Consultant at law firm CMS South Africa. 24 encourages freedom of speech and the expression of diverse views. The views of columnists published on News24 are therefore their own and do not necessarily represent the views of News24.In times of uncertainty you need journalism you can trust.