President Cyril Ramaphosa Emphasizes Municipal Role In South Africa’s Just Energy Transition

President Cyril Ramaphosa addressed the inaugural Just Energy Transition (JET) Municipal Conference at the Gallagher Convention Centre, underscoring the critical role of municipalities in South Africa’s energy transition. The conference, attended by government officials, diplomats, business leaders, and civil society representatives, highlighted the importance of a collaborative effort in transitioning to a low-carbon economy.

In his speech, President Ramaphosa acknowledged the significant challenge posed by South Africa’s reliance on fossil fuels for electricity generation, which accounts for the majority of the country’s carbon emissions. He stressed that the energy transition must be inclusive, providing opportunities for economic growth, energy security, and employment while minimizing costs for citizens.

“Municipalities are central to our efforts to decarbonize the energy sector,” President Ramaphosa stated. He pointed out that municipalities are responsible for nearly half of South Africa’s electricity distribution and play a vital role in expanding access to clean, affordable energy. He also noted that municipalities would lead the way in adopting renewable energy sources and modernizing the electricity grid.

The President highlighted three key areas for focus during the transition:

1. Access to Clean Electricity: Municipalities are now empowered to purchase power from independent producers and establish their own generation entities. The recent Electricity Regulation Amendment Act, signed into law, aims to create a competitive electricity market that supports decarbonization while ensuring affordability for consumers.
2. Sustainable Financing for Infrastructure: Upgrading and expanding the municipal grid to support renewable energy integration is crucial. This will require substantial investment, drawing from both public and private sources. President Ramaphosa announced plans to develop financing solutions, including concessional loans and private sector investments, to support the National Transmission Company of South Africa and other projects.
3. Strengthening Municipal Capacity: The transition necessitates significant training and upskilling within municipalities to manage new technologies and infrastructure. This includes adopting best practices and planning for diverse local conditions. The President emphasized the importance of a tailored approach, recognizing that solutions must be responsive to the unique needs of each community.

President Ramaphosa also addressed challenges such as energy pricing, municipal debt, and the threat of criminal activities targeting new infrastructure. He called for continued collaboration among government, business, labor, and civil society to ensure the just energy transition benefits all South Africans.

The conference concluded with a call for a united effort to achieve a sustainable, secure energy future, with President Ramaphosa expressing optimism about the potential outcomes of the discussions.

“We must ensure that the energy transition works for everyone, providing affordable, reliable, and sustainable electricity while fostering economic growth and development,” he said. “I look forward to seeing the positive impacts of our collective efforts.”

The Just Energy Transition Municipal Conference is set to become an annual event, focusing on driving progress and sharing best practices in South Africa’s journey toward a low-carbon future.