cities

Sustainable Energy
Sustainable energy refers to the production and consumption of energy in ways that support social
and economic development in an environmentally benign manner (SACN, 2015a). The current
electricity crisis facing the country is an invitation for cities to invest more in renewable energy and
energy efficiency, but this will require rethinking the way cities charge for electricity.
Supply shortages led to load-shedding in 2008 and again in 2014–2015, negatively affecting businesses
and households. Eskom is under severe financial strain to maintain its operations and bring new capacity
online. Many municipalities are struggling to pay for electricity used, which compounds Eskom’s financial
pressures. Emissions from coal-based electricity and high consumption of fossil diesel and petrol are also
under scrutiny because of the country’s commitment to reducing GHG emissions.
For municipalities, reducing Eskom-supplied electricity sales will affect city finances, as cities use
proceeds from electricity sales to cross-subsidise other functions and services. Furthermore, the price
of renewable energy technologies is becoming attractive for businesses and households. While this
move is good for industry development, cities are likely to lose income from electricity sales, as
businesses and middle- and high-income households adopt renewable energy and everyone reduces
their consumption because of rising electricity tariffs. Therefore, cities need to find innovative ways of
growing their revenue.
ENERGY: legislation, policies and plans
The National Energy Act (No. 34 of 2008) aims to ensure that diverse energy resources are
available for all South Africans, and its objectives include effective energy management and
conservation. The Act paves the way for increased renewable energy supplies and energy
efficiency initiatives. It obliges the Minister of Energy to develop an Integrated Energy Plan
that includes the supply, transformation, transport, storage and demand of energy.
Sustainable energy is further promoted through the Renewable Energy White Paper (DME,
2003) and the Energy Efficiency Strategy (DME, 2005; SACN, 2015a). Cities can support
these national ambitions through developing policies and bylaws.
The Integrated Energy Plan is meant to guide future energy investments, while the Integrated
Resource Plan guarantees security of electricity supply and reduction of carbon emissions
through diversification and introduction of cleaner technologies. The Integrated Resource
Plan identifies the need to accelerate tapping into the country’s solar, wind and hydropower
resources, while exploiting fossil fuels and mineral resources more responsibly. As of May
2015, 4116 MW of renewable energy had been procured (DoE, 2015) as well as plans
pronounced for nuclear expansion, but the slow diversification of national energy supply
means that energy production will remain largely dependent on coal for some time.
166 State of South African Cities Report 2016