South Africa’s new renewable energy sector is uniquely embedded within the country’s electricity ... more South Africa’s new renewable energy sector is uniquely embedded within the country’s electricity system and in turn its unique political economy. In this paper I firstly chart major developments in the country’s energy policy and governance since the end of apartheid in order to demonstrate how electricity policy is determined by economic, political, and technological factors. Secondly I examine the contested negotiation of key policies, which have been fundamental to the introduction of a renewable energy sector. Finally I consider how the new renewable energy sector has evolved thus far and raise key challenges and concerns for its future development
South Africa’s coal-dominated electricity sector, a key feature of the country’s minerals-energy ... more South Africa’s coal-dominated electricity sector, a key feature of the country’s minerals-energy complex, is in crisis and subject to change. This offers potential opportunities for decarbonisation. Despite positive examples of decarbonisation in South Africa’s electricity sector, such as a procurement programme for renewable energy, there are structural path dependencies around coal-fired generation and security of supply. Decarbonisation goes far beyond what is technologically or even economically feasible, to encompass a complexity of political, social and economic factors. Meanwhile, decision-making in electricity is highly politicised and lack of transparency and power struggles in the policy sphere are key challenges to decarbonisation. Such power struggles are reflected in national debates over which technologies should be prioritised and which institutional arrangements should facilitate them.
This paper explores the political economy of energy transition in South Africa. An economic model... more This paper explores the political economy of energy transition in South Africa. An economic model based around a powerful ‘minerals-energy complex’ that has previously been able to provide domestic and foreign capital with cheap and plentiful coal-generated electricity is no longer economically or environmentally sustainable. The paper analyses the struggle over competing energy visions, infrastructures and political agendas in order to generate insights into the governance and financing of clean energy transitions in South Africa. It provides both a rich empirical account of key policy developments aimed at enabling such a transition and provides reflections on how best to theorise the contested politics of energy transitions.
In the last four years, carbon-intensive, coal-dependent South Africa has become one of the leadi... more In the last four years, carbon-intensive, coal-dependent South Africa has become one of the leading global destinations for renewable energy investment. This investment can be attributed to the unprecedented take off of the country’s Renewable Energy Independent Power Producers’ Programme (RE IPPPP), a bidding process for the procurement of privately generated, utility scale renewable energy, launched in August 2011. Asserting that energy must be studied within the broader economic, political and social forces in which it is embedded, I explore the fundamental role that different modes of finance have played in shaping South Africa’s emerging renewable energy sector within the context of the country’s unique system of accumulation characterised by its minerals-energy complex (MEC) (Fine and Rustomjee, 1996). I focus on finance and financialisation as growing features within the MEC. I further examine the tension or incompatibility between commercial demands for ‘bankability’, short-term shareholder value and impatient finance and RE IPPPP’s unique requirements for community ownership of projects and the realisation of economic development criteria. I find that a reconfiguration of long-standing MEC actors, particularly in the realms of finance is taking place as they merge with new sources of foreign capital.
The growing literature on multi-level governance of climate change has emphasised horizontal netw... more The growing literature on multi-level governance of climate change has emphasised horizontal networks and a broad range of actors shaping mitigation policies and outcomes. In seeking to come to terms with the novel networked configurations of actors engaged in climate change governance, this literature loses its focus on the role of formal institutions in enabling and inhibiting major shifts in policy and practice. The emerging literature on “bottom up” climate policy draws out key political and institutional variables that influence the adoption of climate change policies but take institutionalisation as a given. This paper responds to this neglect of institutions, which is particularly marked in developing countries, by enquiring into the factors that take mitigation policies from statements of intent to embedded institutional practices. The paper draws on institutional theory to argue that there are degrees of institutionalisation and to identify the factors that enable or inhibit the intensification of institutionalisation of mitigation policies. Using an inductive approach that involved qualitative interviews with key policy actors in South Africa, the paper finds that deliberative decision-making and discursive construction, constraints on cross-jurisdictional scope, and inter-scalar problem construction play a key role in shaping the process of institutionalisation.
Despite a contuining electricity crisis from its
coal-fired sources, in recent years South Africa... more Despite a contuining electricity crisis from its coal-fired sources, in recent years South Africa has become one of the leading destinations for renewable energy investment. This is thanks to the launch of its renewable energy independent power producers’ programme for which an estimated $14 billion/R168 billion has been committed thus far and approximately 4 GW of utility-scale renewable energy capacity approved. The programme is unique in that it in order for projects to qualify, developers must commit to undertake requirements for community ownership and economic development benefits in a country with gross socio-economic inequality. However as the industry facilitated by RE IPPPP continues to develop, concerns have arisen including over: the extent to which financial returns will leave or benefit the country; that the ownership of the industry is rapidly becoming the domain of large international utilities; and emerging tensions between ‘bankability’ required by banks and investors and the economic benefits and community ownership criteria.
This paper questions the extent to which the introduction of utility-scale, privately generated r... more This paper questions the extent to which the introduction of utility-scale, privately generated renewable energy into South Africa's coal-dominated electricity supply can be considered a ‘low-carbon transition’. Rather, the renewable energy projects in question are embedded within and contribute to South Africa's high-carbon, electricity-intensive ‘minerals–energy complex’. An empirical consideration is provided of some of the stakeholders involved in the implementation of the wind industry in South Africa, and the possibilities and pitfalls for its long-term sustainability.
South Africa’s new renewable energy sector is uniquely embedded within the country’s electricity ... more South Africa’s new renewable energy sector is uniquely embedded within the country’s electricity system and in turn its unique political economy. In this paper I firstly chart major developments in the country’s energy policy and governance since the end of apartheid in order to demonstrate how electricity policy is determined by economic, political, and technological factors. Secondly I examine the contested negotiation of key policies, which have been fundamental to the introduction of a renewable energy sector. Finally I consider how the new renewable energy sector has evolved thus far and raise key challenges and concerns for its future development
South Africa’s coal-dominated electricity sector, a key feature of the country’s minerals-energy ... more South Africa’s coal-dominated electricity sector, a key feature of the country’s minerals-energy complex, is in crisis and subject to change. This offers potential opportunities for decarbonisation. Despite positive examples of decarbonisation in South Africa’s electricity sector, such as a procurement programme for renewable energy, there are structural path dependencies around coal-fired generation and security of supply. Decarbonisation goes far beyond what is technologically or even economically feasible, to encompass a complexity of political, social and economic factors. Meanwhile, decision-making in electricity is highly politicised and lack of transparency and power struggles in the policy sphere are key challenges to decarbonisation. Such power struggles are reflected in national debates over which technologies should be prioritised and which institutional arrangements should facilitate them.
This paper explores the political economy of energy transition in South Africa. An economic model... more This paper explores the political economy of energy transition in South Africa. An economic model based around a powerful ‘minerals-energy complex’ that has previously been able to provide domestic and foreign capital with cheap and plentiful coal-generated electricity is no longer economically or environmentally sustainable. The paper analyses the struggle over competing energy visions, infrastructures and political agendas in order to generate insights into the governance and financing of clean energy transitions in South Africa. It provides both a rich empirical account of key policy developments aimed at enabling such a transition and provides reflections on how best to theorise the contested politics of energy transitions.
In the last four years, carbon-intensive, coal-dependent South Africa has become one of the leadi... more In the last four years, carbon-intensive, coal-dependent South Africa has become one of the leading global destinations for renewable energy investment. This investment can be attributed to the unprecedented take off of the country’s Renewable Energy Independent Power Producers’ Programme (RE IPPPP), a bidding process for the procurement of privately generated, utility scale renewable energy, launched in August 2011. Asserting that energy must be studied within the broader economic, political and social forces in which it is embedded, I explore the fundamental role that different modes of finance have played in shaping South Africa’s emerging renewable energy sector within the context of the country’s unique system of accumulation characterised by its minerals-energy complex (MEC) (Fine and Rustomjee, 1996). I focus on finance and financialisation as growing features within the MEC. I further examine the tension or incompatibility between commercial demands for ‘bankability’, short-term shareholder value and impatient finance and RE IPPPP’s unique requirements for community ownership of projects and the realisation of economic development criteria. I find that a reconfiguration of long-standing MEC actors, particularly in the realms of finance is taking place as they merge with new sources of foreign capital.
The growing literature on multi-level governance of climate change has emphasised horizontal netw... more The growing literature on multi-level governance of climate change has emphasised horizontal networks and a broad range of actors shaping mitigation policies and outcomes. In seeking to come to terms with the novel networked configurations of actors engaged in climate change governance, this literature loses its focus on the role of formal institutions in enabling and inhibiting major shifts in policy and practice. The emerging literature on “bottom up” climate policy draws out key political and institutional variables that influence the adoption of climate change policies but take institutionalisation as a given. This paper responds to this neglect of institutions, which is particularly marked in developing countries, by enquiring into the factors that take mitigation policies from statements of intent to embedded institutional practices. The paper draws on institutional theory to argue that there are degrees of institutionalisation and to identify the factors that enable or inhibit the intensification of institutionalisation of mitigation policies. Using an inductive approach that involved qualitative interviews with key policy actors in South Africa, the paper finds that deliberative decision-making and discursive construction, constraints on cross-jurisdictional scope, and inter-scalar problem construction play a key role in shaping the process of institutionalisation.
Despite a contuining electricity crisis from its
coal-fired sources, in recent years South Africa... more Despite a contuining electricity crisis from its coal-fired sources, in recent years South Africa has become one of the leading destinations for renewable energy investment. This is thanks to the launch of its renewable energy independent power producers’ programme for which an estimated $14 billion/R168 billion has been committed thus far and approximately 4 GW of utility-scale renewable energy capacity approved. The programme is unique in that it in order for projects to qualify, developers must commit to undertake requirements for community ownership and economic development benefits in a country with gross socio-economic inequality. However as the industry facilitated by RE IPPPP continues to develop, concerns have arisen including over: the extent to which financial returns will leave or benefit the country; that the ownership of the industry is rapidly becoming the domain of large international utilities; and emerging tensions between ‘bankability’ required by banks and investors and the economic benefits and community ownership criteria.
This paper questions the extent to which the introduction of utility-scale, privately generated r... more This paper questions the extent to which the introduction of utility-scale, privately generated renewable energy into South Africa's coal-dominated electricity supply can be considered a ‘low-carbon transition’. Rather, the renewable energy projects in question are embedded within and contribute to South Africa's high-carbon, electricity-intensive ‘minerals–energy complex’. An empirical consideration is provided of some of the stakeholders involved in the implementation of the wind industry in South Africa, and the possibilities and pitfalls for its long-term sustainability.
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Papers by Lucy Baker
coal-fired sources, in recent years South Africa
has become one of the leading destinations for
renewable energy investment. This is thanks to
the launch of its renewable energy independent
power producers’ programme for which an
estimated $14 billion/R168 billion has been
committed thus far and approximately 4 GW of
utility-scale renewable energy capacity
approved. The programme is unique in that it in
order for projects to qualify, developers must
commit to undertake requirements for
community ownership and economic
development benefits in a country with gross
socio-economic inequality. However as the
industry facilitated by RE IPPPP continues to
develop, concerns have arisen including over:
the extent to which financial returns will leave or
benefit the country; that the ownership of the
industry is rapidly becoming the domain of large
international utilities; and emerging tensions
between ‘bankability’ required by banks and
investors and the economic benefits and
community ownership criteria.
coal-fired sources, in recent years South Africa
has become one of the leading destinations for
renewable energy investment. This is thanks to
the launch of its renewable energy independent
power producers’ programme for which an
estimated $14 billion/R168 billion has been
committed thus far and approximately 4 GW of
utility-scale renewable energy capacity
approved. The programme is unique in that it in
order for projects to qualify, developers must
commit to undertake requirements for
community ownership and economic
development benefits in a country with gross
socio-economic inequality. However as the
industry facilitated by RE IPPPP continues to
develop, concerns have arisen including over:
the extent to which financial returns will leave or
benefit the country; that the ownership of the
industry is rapidly becoming the domain of large
international utilities; and emerging tensions
between ‘bankability’ required by banks and
investors and the economic benefits and
community ownership criteria.