In today’s world, electricity and power in general are critical to get anything done. From the moment we wake up electricity and power play a major role, indeed power plays a major role even during our sleeping hours. Most of us wake up to an alarm which is powered by either electricity or batteries, we have a warm or hot shower with water heated by some form of energy source, breakfast and all the other meals we eat through the day are prepared using power, generated from different sources. Getting to work, either using public transportation or a private vehicle, requires power and energy. Whether you are a student or a worker, your outputs require some of power and energy. Energy, as generated by either coal, solar, nuclear or petroleum-based products is the life blood of everyday life. Those countries which produce at least enough energy to meet all their private and industrial consumption needs have a good chance of creating thriving economies. Those countries which fail to produce enough power to meet even the most basic of private and industrial needs have economies languishing in the doll-drums.
Energy, as this relates to electricity, accounts for 15% of South Africa’s GDP. Taking electrical energy and all other energy sectors into account, specifically the petroleum sector, the contribution of energy to SA’s GDP could possibly account for 30% of GDP.
Coal is South Arica’s main source of energy for electrical power generation with 88% of all electricity generated produced using coal, while nuclear, solar and other sources account for the rest. South Africa has no crude-oil reserves and as such the country imports all the petroleum-based products it consumes, be it petrol, diesel, paraffin etc.
Fundamentally changing SA’s energy sector
South Africa faces two critical energy problems. First, increasing access to electricity to as wide a population as possible. Secondly, reducing the country’s carbon footprint. The government of President Zuma ought to therefore consider an aggressive increase in the use of cleaner sources of energy (wind, solar and water) for power generation (except for a synthetic fuels produced by SASOL).
In order to fastrack the increased use of cleaner sources of energy, government ought to liberalize the electricity sector. Currently Eskom produces 95% of all power consumed in South Africa, and in my view more private players should be allowed to compete with Eskom. Eskom is heavily invested in coal-powered electricity and one of the ways to speed up the adoption of other cleaner power-production means would be to license new power generators. Government could keep Eskom as the sole entity licensed to generate power from coal while new licenses could be issued to new generators on an energy sources basis i.e. licenses for wind-power generators, water-power generators and solar power generators. Together, these newly licensed electricity generators along with Eskom, would contribute their electricity to a common national or even regional grid(s).
This approach would serve to address the above two challenges as well as to generate new industries and new jobs to further fuel (pun intended) economic growth.
Our Politicians must show willingness to create effective government!!
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