President Cyril Ramaphosa has emphasised the crucial role of municipalities in South Africa’s drive towards a successful energy transition and enhanced energy security.
Ramaphosa was speaking at the opening ceremony of the two-day inaugural Municipal Just Energy Transition (JET) conference at the Gallagher Convention Centre in Johannesburg on Monday.
The conference seeks to detail plans to decarbonise the energy sector while ensuring that communities reliant on high-emission industries are supported through the shift to a low-emission economy.
Key stakeholders in the municipal sphere will play a role in advancing the implementation of the municipal portfolio roadmap outlined in the Just Energy Transition Implementation Plan (JET IP).
According to Ramaphosa, this received cabinet approval in the six administration last year.
Clean electricity
The plan focusses on three main objectives, which include providing access to affordable and clean electricity, securing sustainable financing for energy infrastructure, and strengthening municipal capacities to manage the transition effectively.
He said the Electricity Regulation Amendment Act, which he signed into law last week, paved the way for a competitive electricity market.
He said the reforms of the law are expected to speed up decarbonisation and result in a better deal for households and businesses.
Ramaphosa stated that South Africans should not be subjected to higher electricity rates in the name of national climate change.
“It will be important to sustain and expand this support during the just energy transition and ensure that many poor households benefit from the subsidy.
“We will need to deal with challenging issues like electricity pricing structures and the staggering levels of municipal debt owed to Eskom,” said Ramaphosa.
He asserted that the municipal electricity infrastructure needed an upgrade to cope with the current demand.
He insisted that the future of energy production will demand systems that drastically change in design, capability, and operation.
He said the government was pursuing various financing options, such as concessional loans, to support the National Transmission Company of South Africa in expanding the grid.
They are also creating mechanisms to attract private sector investment and fast-tracking funding for projects that are prepared for investment in every aspect of the just energy transition.
“Smart metering will have to accommodate the increased penetration of renewable energy at different scales. It will need to facilitate wheeling and feed-in by small-scale embedded generation.
“Massive investment is needed to ensure optimal grid control, safety and energy storage. This investment will need to draw on both public and private sources of capital,” said Ramaphosa.
Training and upskilling
The president emphasised that extensive training and upskilling are necessary for securing sustainable financing for energy infrastructure.
New systems will need to be established to assess human resources, technical capacity, and other needs within municipalities, allowing for proper planning and budgeting.
He also highlighted that municipalities will be required to adopt best practices in the design and implementation of programs and projects.
“Electricity must be affordable, available and sustainable. Costs must be managed. Infrastructure must be maintained. Services must be delivered reliably and consistently.
“We must leverage the financing and support that has been pledged by international partners and the private sector to support municipalities,” said Ramaphosa.
