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Clean Energy can boost SA’s economic recovery post-COVID-19
9 July 2020
The COVID-19 pandemic is having a major impact on renewable energy systems around the world, according to a new report by South African National Energy Association (SANEA), which claims that clean energy could be South Africa’s new ‘gold rush’ and an active driver of the country’s economic recovery from the COVID-19 pandemic.
According to SANEA, this would be possible if policies and regulations were changed to be more supportive of new business models for the delivery of infrastructure in a context of weak public finances.
“This approach would fundamentally shift South Africa’s energy transition trajectory and would be the equivalent of finding gold in South Africa over 100 years ago, with the resultant economic and social benefits,” says the Secretary-General of SANEA, Wendy Poulton. She continued by saying, “There are many opportunities in the transition to the renewable energy sector to stimulate economic growth and create employment opportunities,” Poulton explained. “This is the case, despite the added impact of COVID-19, the downgrade of the sovereign credit rating and an environment of low investor confidence.”
She added that the SANEA report recommendations included: understanding the impact on jobs and future skills requirements; developing a transition roadmap with detailed implementation plans; broad-based national strategies around key energy technologies; evolving the Integrated Energy Plan as a matter of urgency to ensure alignment, and enabling growth in clean energy as a mechanism to stimulate economic growth post-COVID-19.
“If the uncertainties listed in the report, from inappropriate policies and corruption to price volatility and a lack of skills, are not managed then economic growth will remain weak, and energy demand will not be met,” says Chairperson of the SANEA Board, Kiren Maharaj. She added that the new “gold rush” should be carefully managed to ensure maximum national benefit.
Originally written by Mwangi Githahu, IOL
