In 2022, the president through the Presidential Commission on Climate Change (PCC) launched the Just Energy Transition Implementation Plan 2023-2027. This JET Implementation Plan provides guidelines on how South Africa can move closer to fulfilling its decarbonisation commitments in a way that benefits all parties impacted by the impending energy transition. For a just transition, the plan envisages an approach that would promote inclusive growth, energy security, and job creation, among other socio-economic considerations. The plan has 5 clear objectives and specific key activities and investments required at a municipal level and other sectors.
The Enabling Role of Local Government
Local governments have an enabling role to play in facilitating private investment for the JET. Municipalities own and operate about half of the country’s electricity distribution grid, making them critical role players. Municipalities are also electricity service providers through the purchase and sale of electricity to their residents and businesses and through legislative provisions to purchase power directly from Independent Power Producers (IPPs) and/or to establish their own power-producing entities. Municipalities can leverage this position to simply license processes for new generation capacity and lead national decarbonisation efforts.
The successful implementation of the JET IP will depend largely on well-capacitated municipalities. The objectives to “Enable and accelerate private investment in generation capacity” and “Fast-track the procurement of new generation capacity from renewables, gas, and battery storage” invite local governments to spearhead innovation. Municipalities can champion new power purchase agreements, attract investors, and explore wider options for renewable energy.
Municipalities are pivotal to empowering communities by enabling households and businesses to invest in alternative energy, such as rooftop solar. These businesses and homes alike are already exploring solar installations, reducing their reliance on the grid. Local governments have the power to make that transition easier by streamlining the regulatory processes, providing incentives, and offering technical assistance, among other efforts to expand renewable energy access.
The Challenges and Issues Facing Local Government
This journey, however, will not be without its challenges, going forward from here would require clear articulation on the role of municipalities in the JET IP to allow a well-coordinated transition. The consultation by PCC unveiled several issues and concerns by local government stakeholders. Importantly, clarifying institutional roles and clear mandates for local government is essential for the effective implementation of the JET IP. This will, amongst other things, require decluttering the fragmented and complex institutional arrangements in respect of municipalities, coordinating activities and ensuring that programmes match all relevant requirements.
Local governments face immense challenges, from capability challenges to ageing infrastructure and financial constraints. For example, the JET IP makes it clear that the category ‘Infrastructure: Distribution Maintenance’ is intended to include all grid upgrading required for a successful energy transition. However, the current expenditure on infrastructure maintenance and upgrading (R10 bn largely from municipal own revenue) falls very far short of what is required to address the backlog (R200 bn). Significant investments are required in other target areas.
Overcoming Challenges
The SACN’s State of South African Cities Report (SOCR 2021), has since made broad recommendations, informed by the journey travelled by cities over the past 25 years, and key to delivering energy transitions at municipal level.
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- Amplify the ‘voice’ of local government.
- Adopt a local cooperative model of governance.
- Implement a differentiated approach to solving problems.
Firstly, the JET IP acknowledged that municipalities oppose top-down developed and one-size-fits-all models, as well as a JET Implementation Plan institutional structure that does not give a strong voice to municipalities. Secondly, a local cooperative model of governance expects everyone to work together to achieve a common purpose (in this case JET). As noted in the SOCR 2021, the problem is not always local government in and of itself but complex systemic challenges, which require a cooperative governance structure to resolve them. Lastly, municipalities demonstrate significant differences in existing capability levels and required investments across target areas like capability and capacity, knowledge management (municipal revenue), and energy access design. There is an urgent call for differentiation. Implementing these recommendations is key to ensuring local Just Energy Transition is not just a lofty goal but a lived reality for all South Africans.
References
Republic of South Africa., 2023. Just Energy Transition Implementation Plan 2023–2027. Pretoria: The Presidency.
SACN (South African Cities Network). 2021. State of Cities Report V. Johannesburg: SACN.
Kopano Ntsoane is a Junior Researcher at the South African Cities Network (SACN); to contact him, email kopano@sacities.net
Majaha Dlamini is the Urban Data Manager at the South African Cities Network (SACN); to contact him, email majaha@sacities.net