Municipalities are at the centre of government's efforts to move towards clean energy and fulfil the country's commitment to global climate change.
This is according to President Cyril Ramaphosa, who was addressing the opening ceremony of the Municipal Just Energy Transition (JET) Conference held in Johannesburg on Monday.
The President highlighted that South Africa's 257 metropolitan, district and local municipalities "own and operate approximately half of South Africa's electricity distribution grid and facilitate universal access to electricity".
"One hundred and sixty five municipalities are electricity service providers. Through the Integrated National Electrification Programme grant, municipalities are responsible for addressing the electrification backlog.
"Municipalities therefore need to be in the driving seat when it comes to providing clean, affordable energy to communities, businesses and industry," the President highlighted.
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In this regard, South Africa's Cabinet approved the JET Investment Plan, which has a dedicated municipal portfolio roadmap with three areas of focus.
These are:
- Providing access to affordable clean electricity;
- Sustainable financing for electricity infrastructure, and
- Strengthening the capacity of municipalities to manage the transition.
On the first area of focus, the President said the recent promulgation of the Electricity Regulation Amendment "paves the way for a new, competitive electricity market.
"The reforms contained in the law must help to speed up decarbonisation. But more than that, they must result in a better deal for households and businesses.
"The national climate change effort must not come at a higher cost for electricity users. South African households, like many around the world, are battling with the rising cost of living, including the cost of energy.
"We must therefore ensure that the energy transition does not contribute to energy poverty. It must not deepen inequality," President Ramaphosa insisted.
In terms of sustainable financing for electricity infrastructure, he said municipal grid system needs to be upgraded, modernised and extended.
"The energy generation of the future requires systems that are fundamentally different in terms of design, capability and operation.
"Smart metering will have to accommodate the increased penetration of renewable energy at different scales. It will need to facilitate wheeling and feed-in by small-scale embedded generation.
"Massive investment is needed to ensure optimal grid control, safety and energy storage. This investment will need to draw on both public and private sources of capital," he said.
Turning to how the capacity of municipalities can be strengthened, President Ramaphosa said extensive training and upskilling of officials will be the order of the day.
"New systems will be required to identify human resource, technical capacity and other needs within municipalities, and plan and budget accordingly.
"Municipalities will need to adopt best practice when it comes to the design and implementation of programmes and projects," he said.
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The President told conference delegates that the country's drive towards a lower carbon intensive economy does not only reside with government.
"A just energy transition is about promoting economic diversification, transformation and industrialisation in the renewable energy sector that empowers workers, marginalised communities and black businesses.
"The achievement of defined just energy transition outcomes at a municipal level requires supportive policies and leadership, good governance and a coordinated effort among all relevant institutions.
"As government, business, labour and civil society, let us deepen our collaboration to achieve an energy future that is secure and sustainable for all," President Ramaphosa said.
