A call for equitable power supply

During the panel discussion on energy at the Black Business Council Summit, I began by illustrating a scenario of a doctor evaluating two patients with distinct medical backgrounds and symptoms. Just as it would not make sense for the doctor to prescribe identical treatments for both patients, it seems impractical for Germany’s energy transition policy to be imposed on South Africa. Each nation possesses its unique economic landscape and energy needs, warranting tailored solutions rather than a one size fits all approach.

Germany’s economy is approximately 6.5 times larger than our economy. Germany is surrounded by affluent countries that produce energy, allowing it sufficient back up options. Now I ask, can SA take this country’s policy as a blueprint for its own energy transition journey? I think not.

The UK Secretary of State for Energy Security Claire Coutinho puts it clearly: “If countries are forced to choose between clean energy and keeping citizens safe and warm, believe me they’ll choose to keep the lights on.”

Unfortunately, this is the pervasive trend. African countries are being forced to phase out fossil fuels like coal. The rush to phase out fossil fuels without considering the socio-economic implications can exacerbate inequalities and hinder progress. The abrupt shutdown of the Komati Power Station serves as a cautionary tale, showing the repercussions of transitioning away from traditional energy sources without a sound plan.

To transform the energy space, we need to ensure that there is sufficient supply to go around, so that no one is left behind. Increasing supply would require a realistic assessment of the situation, followed by an innovative and forward-thinking approach and lastly allowing countries the agency to craft policies that are relevant to their energy and economic needs.

Fossil fuels and renewables can coexist in a balanced energy landscape. Fossil fuels, such as coal and natural gas, provide reliable baseload power, ensuring stability in energy supply. Integrating both into the energy mix allows for flexibility, ensuring reliable power generation even when renewable sources fluctuate due to weather conditions.