- South Africa’s energy crisis has considerably impacted the country’s economy.
- The energy transition in South Africa has gained widespread public support, and the market may be looking to secure the necessary raw materials to fuel this shift in 2023.
South Africa’s energy crisis has considerably impacted the country’s economy, with load shedding affecting food security, infrastructure and communication networks, and various key economic sectors, like mining, tourism and manufacturing. Jan Fourie, Scatec sub-Saharan Africa executive VP, has described the conundrum as an energy crisis and a fossil fuel dependency crisis.
He noted, “With abundant sunlight and wind resources, renewables present the optimal solution to our energy woes in South Africa. The situation’s urgency calls for increased private sector investment in renewable energy projects to fast-track the Department of Mineral and Energy Resources’ Integrated Resource Plan and accelerate our economic recovery by embracing the worldwide transition towards clean energy. The energy transition in South Africa has gained widespread public support, and the market may be looking to secure the necessary raw materials to fuel this shift in 2023.”
Fourie suggested that “The significant upscaling in the production of lithium-ion batteries has made renewable energy price-competitive with fossil fuels, further driving the shift towards clean energy sources. This could present an opportunity for South Africa’s metal producers to fill the global supply gap, potentially emerging as a key player in the new global metals market and simultaneously driving a just energy transition locally.”
Scatec communications manager Stian Kalsen added that “the introduction of the green finance taxonomy is bringing a measure of standardisation and transparency to the process of classifying and scoring South Africa’s green economic activities, helping facilitate a smooth equitable transition to a low-carbon, net-zero emissions economy.”