South Africa needs new power generation, but just how additional supply should be delivered is a matter of much – and increasingly heated – debate.

At the COP26 talks last year, an innovative agreement was reached between a group of rich countries and South Africa. The Just Energy Transition Partnership aimed to provide $8.5 billion of financing over the next five years to support decarbonisation plans in South Africa.

At the heart of the problem is South Africa’s reliance on coal, accounting for 77% of power generation. Could the country transition to renewable energy in one jump, or does it need gas to serve as an intermediate step?

The Just Energy Transition Partnership (JETP) could be a great opportunity for SA. The $8.5bn international commitment — announced in November 2021 to help support the country’s just energy transition — could contribute to tackling some of its most pressing energy, social and environmental challenges. It could position the country as a leader in this new type of international support and set an example for other countries.

There is a dangerous narrative circulating that due to the current energy crisis, South Africa must take any and all electrons that are available. But some electrons come at too high a price, and South Africans would be left paying for these panic purchases for a long time.

Africa is facing a burning question: is the development of fossil gas infrastructure the right choice for its future?

A wave of new evidence suggests that gas exploitation will not bring the expected long-term economic and development benefits for the continent. Instead, the short-term winners would be the international fossil fuel companies currently circling Africa, and the European countries looking for stop-gap alternatives to Russian gas.

The global transition away from fossil fuels to renewable energy sources could trigger financial challenges for India and major developing countries such as Russia, Brazil and China because of their high dependence on revenues from fossil fuel, according to a study by the International Institute for Sustainable Development (IISD).

A new report by the International Institute for Sustainable Development (IISD), titled Boom and Bust: The Fiscal Implications of Fossil Fuel Phase-Out in Six Large Emerging Economies, looks at the potential financial ramifications of phasing out fossil fuels in six emerging economies — Brazil, Russia, India, Indonesia, China, and South Africa (BRIICS). They must begin adjusting their fiscal policies to account for declining fossil fuel use or risk a $278 billion revenue gap by 2030. 

As the global clean energy transition gathers pace, six emerging economies need to start adjusting their fiscal policies now to account for declining fossil fuel use-or risk a $278 billion gap in revenues by 2030, equivalent to the combined total government revenues of Indonesia and S. Africa in 2019, according to a new report by the International Institute for Sustainable Development. 

As the world has pledged to transition towards cleaner energy to combat climate change, a latest report said the governments of Brazil, Russia, India, Indonesia, China and South Africa (BRIICS) need to act now to decarbonize and start adjusting their fiscal policies to account for declining fossil fuel use or they could face a USD 278 billion revenue gap by 2030.

Amidst soaring gas and oil prices and global shifts in energy markets, many decision makers in the private and public sectors in South Africa seem intent on investing in gas. But if we really want long-term energy security – and a just transition to a low carbon economy – we must look to renewable energy.

The question of whether natural gas can help in the transition to a low-carbon future – and whether Africa should exploit its prodigious reserves – is sparking a fierce debate.