Developing a Framework for Energy Transition Policy in South Africa

This report investigates the development of a just energy transition framework for South Africa, addressing the nation's energy crisis and the challenges of transitioning to renewable energy sources. It analyzes the problem statement, including the causes of electricity shortages, the impact of Eskom's financial struggles, and the need for a National Low Household Energy Strategy. The report reviews previous studies, exploring the role of renewable resources, the impact of political factors, and the importance of a more integrated energy transition framework. It examines the conceptual framework, research questions, and objectives, including the role of effective dialogue, social shaping of technology, and political economy in policy formulation. The significance of the research is highlighted, emphasizing the potential for economic improvement and sustainable development through an effective energy transition framework. The report outlines the research methodology, including the research paradigm, design, approach, and data analysis methods. The study aims to provide recommendations for creating a more sustainable and equitable energy future for South Africa, considering socio-economic impacts and the components needed for a just energy transition framework. The report highlights the importance of addressing the problems like mismanagement, and lack of maintenance of power plants to create an effective energy transition framework.

Running head: TITLE
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Name of the Student
Name of the University
Author Note

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Executive Summary
The study focuses on the issues that are related to the Energy transmission frameworks that
are present in South Africa. The study has evaluated the entirety of the issue to provide
recommendations for implementing a better energy transmission framework in the future.

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Table of Contents
1.1 Introduction..........................................................................................................................4
1.2 Problem Statement:..............................................................................................................5
Previous studies on the Problem............................................................................................6
1.3 Conceptual Framework or model.........................................................................................7
The management question......................................................................................................7
1.4 Research questions...............................................................................................................9
1.5 Research objectives..............................................................................................................9
1.6 Significance of the research...............................................................................................10
1.7 Research methodology.......................................................................................................11
Research paradigm...............................................................................................................11
Research Design...................................................................................................................11
Research approach...............................................................................................................11
Sampling size.......................................................................................................................11
Sample..................................................................................................................................12
Sample frame.......................................................................................................................12
Sampling method.................................................................................................................12
Data collection method........................................................................................................12
Data analysis methods..........................................................................................................12
1.8 Terminology.......................................................................................................................13
1.9 Assumptions.......................................................................................................................13

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1.10 Outline of the study..........................................................................................................13
1.11 Chapter summary.............................................................................................................13
1.12 References........................................................................................................................15

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1.1 Introduction
The National Development Plan(NDP) 2030 is South Africa’s long term vision and
plan. South Africa’s access to electricity is unevenly distributed. Emission reduction can be
undertaken in developing countries in a way that does not expose important development
goals, such as poverty reduction. South Africa’s energy crisis has been the main reason for
this study. Eskom has been implementing “Load-shedding” whereby power is cut for
anything from two to four hours to business and household across the country so that it can
relieve pressure on the national grid. The possible solution is just energy transition. The
potential solution to the highly interrelated poblems of energy poverty and high greenhouse
gas emissions is to be found in the expansion of renewable energy.
The National Development Plan was adopted by Parliament in 2012. National
Planning Commission is an independent advisory body appointed by the president. South
Africa is one of the most unequal countries in the world. Millions of South Africans lack
access to electricity. Africans need access to affordable, low carbon electricity to provide for
basic needs. The following are the strategy that should be done- draft, and implementation a
National Low Household Energy Strategy, prioritize energy access for those without reliable
access to electricity, using renewable energy solutions and it can increase electricity subsidies
for low income households.

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Approximately, 14 per cent(around 2.5 million) of South African households lack
access to the national electricity grid while at least 40 per cent of South Africans energy.
Escom has announced a net financial loss of R21 billion. The problem was the amount spent
on diesel to keep the lights on.
1.2 Problem Statement:
Potential Causes of the problem:
Most of the households of South Africa are deprived of electricity supply, whereas the
maximum population faces energy poverty. The five possible causes of the problem are listed
below:
(1) Inability to produce enough power: One of the primary cause of lack of electricity is
their inability to produce sufficient power because several fleets are under repair or
are not capable of generating required capacity.
(2) Robust growth: The Eskom’s surplus capacity for power generation is completely
exhausted due to continuous economic growth and that has led to an excessive
reduction in reserve margin. The reserve margin is expected to show a downward
trend for the coming years.
(3) High debt: The Eskom’s debt increased at a massive speed which resulted in lower
profits and ultimately led to implementing load-shedding. There was an increase in
the energy cost of the power utility, and also employee-benefit showed an increase.
Eskom was unable to cover its costs and could not pay the debts and interest on the
debt. The financial crisis which Eskom suffered led to load-shedding to generate
enough energy capacity.

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(4) Mismanagement: A huge political influence and mismanagement in Eskom hindered
the power supply in South Africa. One of the biggest failure which led to a lack of
electricity supply is mismanagement of Eskom.
Power plants and maintenance: The biggest issue which contributes to the energy crisis is
obsolete and inadequate power plants and also lack of maintenance of these power plants.
Previous studies on the Problem
There have been various previous researches in regards to the power transmission
issues faced by South Africa. According to Marais et al (2018) the country is facing
significant levels of misutilization of resources when it comes to the energy sector. The
mining towns of South Africa, though abundant in resources are often not utilized properly
by the government. This is especially true for the coal mining factors that directly contribute
towards power generation. According to Fine (2018) the constraints for the energy industry
are present more due to the fact that the industry is still dependent on the non-renewable
sources for power generation rather than shifting to the renewable resources that are present
abundantly. The political aspects like bureaucracy are very strong factors that affect energy
transition in South Africa according to the article. Energy transition is a lengthy process and
the larger part of the previous pieces of literatures deal with the lengthiness of the transition
process. As opined by Nakumuryango and Inglesi-Lotz (2016) South Africa has not
performed well in term of utilization of renewable resources of energy. The performance has
been lower than many of its African counterparts. The framework for energy transition can be
made more effective if some crucial changes are brought to the National Integrated Resource
Plan (NIRP) that was formed by the government in 2002. According to Kroth, Larcinese and
Wehner (2016), there is a need to create a more integrated energy transition framework and
energy policy in South Africa. The study has focused on the need for democratization of the

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energy transition process. Hence, importance must be given to the poorer populations that
normally have little to no access to power. Especially, this is important to tackle the large
economic inequities that have been created by the Apartheid era. As opined by Corkin,
(2017) mobilization of private capital can help to enhance the prospects for energy transition
in South Africa. Private investments can be further be enhanced through effective support
from the government agencies.
1.3 Conceptual Framework or model
The management question
There are significant factors that are related to the management, as evident from the
effective analysis of literature. It is important to consider some of the important problems for
the management in devising effective transition strategies. Costs, work forces, strategy
planning and low standard of living are some of the main barriers that are present in front of
the management. The management question that becomes very important considering all the
major factors is whether the management will be able to change its strategies in order to
achieve the energy transition targets that need to be achieved. The management lacks
effective decision making abilities as much of the decisions that have been made by them
have been based on strategies that have been formed long ago. Hence, many of the strategies
are obsolete. At the same time financing the transition process is a significant challenge for
the management. One of the biggest problems that are being faced at the time is the formation
of regulation. There are some vested interests that work against the favor of making more
effective energy policies. These along with various other factors are responsible for the
present management problem. It is important to note that the management has focused on the
energy transition issues many times in the recent past.

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The conceptual framework that would be utilized is focused on just energy transition.
Scenario planning and transition management concepts would be given much importance in
understanding the subject matter. Scenario planning would be used to understand the future
of the energy transition process. Assumptions of the future goals would be made.
Subsequently, the management of transition that would be most important in considerations
of the goals to be achieved would be made. A conceptual model would be created in
accordance of the same to enhance the scope of the study.
One of the major risks associated with the problem is mis-management of the
developmental framework. A major business oriented risk is the potential loss of profitability
of the high initial costs associated with the development of the energy transition frameworks.
A major economic risk is the potential slowdown of the economy of South Africa if the
transition process takes longer than the stipulated time.
If the problems are not addressed it may result in further disintegration of the energy
transition process. Future power costs could grow manifold due to the excessive reliance on
non-renewable energy sources. At the same time pollution can increase as the carbon
footprint of the energy sector would keep on increasing. Another major threat is the
downward momentum for growth that can be witnessed in the energy sector of the country.
There are many benefits that can be gained upon the successful management of the
identified problems. The renewable energy sector growth can boost the entire energy sector
of the county. Reduction in carbon footprint would contribute towards the sustainable
development of the energy sector. Economy would improve as significant developmental
prospects would be created through a more effective energy transition framework.

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1.4 Research questions
The main research question for the study is: How an effective framework for energy
transition development can be developed in order to create just energy transition in South
Africa?
Some sub-questions have been selected to improve the research for the study. These
question would help to undertake a more effective and efficient research study.
RQ1: What role does effective dialogue play in the formulation of energy policy?
RQ2: How does social shaping of technology help in the formulation of energy policy?
RQ3: What is the role of coalitions in shaping the energy policies?
RQ4: What role does political economy play in the formulation of effective policies?
RQ5: What importance is associated with the socio-economic impact concerning the
development of a just energy transition?
RQ6: What are the components that need to be contained in a just energy transition
framework considering South Africa?
1.5 Research objectives
There are two types of research objectives that have been chosen for the study. One is
classified under the primary objective of the research. The secondary objectives would be the
sub-objectives under the primary objectives of the study.
The primary objective of the research would be to determine the energy transition
process that would be the most effective for the future energy development prospects of
South Africa.

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There are certain important secondary objectives that can be associated with the
primary objective of the study. These are:
 To determine the role played by effective dialogue in facilitating the sustainable
energy transition
 To determine the role of social shaping of technology in the formulation of effective
energy policies
 To understand the role of coalitions in shaping the energy policies of South Africa
 To understand the role of political economy in the formulation of effective policies
 To effectively understand the importance associated with the socio-economic impact
concerning the development of a just energy transition
 To find out the components that need to be contained in a just energy transition
framework considering South Africa
 To develop an effective conceptual framework for the development of South Africa’s
just energy policy
The formation of these objectives would help in developing better understanding of the
subject matter through the research that would be undertaken. It is important to consider that
all the objectives have been aligned with the research questions to enhance the effectiveness
of the study. The aim is to garner better findings that can help in the more effective
presentation of the study.
1.6 Significance of the research
The research aims to provide an effective solution to the problems that are being faced
by the energy sector of South Africa. The country has performed lower than the other African
countries in the past years concerning the development of renewable sources of energy. This
has led to the country being more inclined towards the usage of coal for generating power.
Subsequently, this has harmed the environment by increasing the carbon footprint of the
energy sector. In order to provide power to the poor and marginalized populations of the
country, reliance on the renewable sources of energy can be the most effective option. It is
important to develop strategies that can help the country grow in terms of its energy
development capacity.

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1.7 Research methodology
Research paradigm
The research paradigm that is being chosen for the study is epistemology. This
paradigm is concerned with the origin, methods, nature and limits of knowledge. This
paradigm can be used effectively to bring forward the best results from the study as it would
help much importantly in the development of knowledge.
Research Design
The research design that has been chosen for the study is data collection. Quantitative
data would be taken for the study through interviews that would be conducted. 25 people
would be interviewed and the data gathered would be measured subsequently.
Research approach
Quantitative research approach is being taken for undertaking the research. This
means that the research would be dependent on quantitative data. The approach is taken to
ensure that a quantifiable implication can be reached for the study. The effectiveness of the
study can hence be better determined.
Sampling size
The sampling size that have been chosen for the research is 25. This would help in
developing the effectiveness of the research study.

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Sample
25 people that are engaged with the energy sector would be interviewed to undertake
the study. The interview results would be measured through the SPSS systems to develop a
co-relational study.
Sample frame
The sampling frame refers to the source material from where the sample is drawn. In
the study this has been done from the population that has already been engaged in some way
with the energy sector of South Africa.
Sampling method
The sampling method that would be utilized for the study is non-probability sampling.
This means that a population would be selected for the effective analysis of the subject matter
based on the relevance of the population in the context of the energy industry.
Data collection method
The data collection method would be interview. 25 people that are presently involved
with the energy sector of South Africa or have been involved in the past would be
interviewed to know their opinions. Interview questionnaires would be created and
distributed among the sample population.
Data analysis methods
SPSS tool would be used to analyze the opinions that are provided by the population
that is interviewed. This would be further used to develop the implications that are derived
through the study.

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1.8 Terminology
Energy Transition- the transition from energy derived from non-renewable sources to
renewable sources
Power- Electricity derived through various sources
1.9 Assumptions
The assumptions that have been taken for the study are that development of energy
transition is very important for the sustainable future utilization of resources. It is also an
important part of the assumption that South Africa needs to develop better energy transition
frameworks to develop better value for their future.
1.10 Outline of the study
Chapter 1: Introduction
Chapter 2: Literature Review
Chapter 3: Methodology
Chapter 4: Research results
Chapter 5: Conclusion
1.11 Chapter summary
Chapter 1: Introduction- in this chapter the entire study would be introduced and the scope,
background, research questions and objectives would be devised
Chapter 2: Literature Review- this chapter would utilize the previous pieces of literatures to
develop better understandings of the concepts.

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Chapter 3: Methodology- the thorough analysis of the methods that are utilized for the study
would be provided. The reason for choosing each part of the research process would be
provided for the study.
Chapter 4: Research results- the results that would be derived from the analysis of the subject
matter would be provided. The results would help to derive better implications.
Chapter 5: Conclusion- this is the concluding chapter. The implications that can be derived
from the entire study would be provided in this part.

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1.12 References
Corkin, L. (2017). Mobilising Private Capital for Green Energy Investments-South
Africa. Observer Research Foundation.
Fine, B. (2018). The political economy of South Africa: From minerals-energy complex to
industrialisation. Routledge.
Kroth, V., Larcinese, V. and Wehner, J., 2016. A better life for all? Democratization and
electrification in post-apartheid South Africa. The Journal of Politics, 78(3), pp.774-
791.
Marais, L., McKenzie, F. H., Deacon, L., Nel, E., van Rooyen, D., & Cloete, J. (2018). The
changing nature of mining towns: Reflections from Australia, Canada and South
Africa. Land Use Policy, 76, 779-788.
Nakumuryango, A., & Inglesi-Lotz, R. (2016). South Africa’s performance on renewable
energy and its relative position against the OECD countries and the rest of
Africa. Renewable and Sustainable Energy Reviews, 56, 999-1007.
Weyer, V. D., Truter, W. F., Lechner, A. M., & Unger, C. J. (2017). Surface-strip coal mine
land rehabilitation planning in South Africa and Australia: Maturity and opportunities
for improvement. Resources Policy, 54, 117-129.