This question, which is crucial to economic policy, is one of many addressed in a forthcoming book,. The book, set to be published on 24 February by the
The outcome of South Africa’s energy transition depends crucially on the institutions and policies that guide the introduction of the new technologies. Legal frameworks, public policies and the practices of trade unions and companies will all determine the direction and pace of the transition. If, on the other hand, trade unions and government policy are backward-looking and seek to protect the status quo, this will slow the rate of diffusion of new technologies. It will also slow the rate at which South Africa will be able to put in place a new economic growth model.
The programme to restore electricity security in South Africa has the potential to stimulate large-scale investment in the country’s electricity generation, transmission and distribution infrastructure. Such investment will need to be maintained and expanded for many years to come. Unfortunately, a number of local wind-tower manufacturing plants and solar-manufacturing facilities have been shut down in South Africa in recent years because of delays and stops and starts in procurement. To succeed in maximising industrial policy and employment benefits, there needs to be certainty and credibility in the management of the country’s energy transition.
Source: News Formal (newsformal.com)
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