AfrElec: South Africa’s difficult shift from coal

Coal is the lifeblood of South Africa’s economy. It accounts for more than three-quarters of the country’s electricity generation and is a major export commodity. As of 2021, the coal mining industry employed close to 93,000 workers, with an additional 200,000 people employed indirectly in the coal value chain.

Given coal’s centrality to the economy, it’s no wonder that the South African government has been loath to reduce domestic dependence on it. But as its energy sector comes under mounting pressure from the international community, and as renewable infrastructure becomes cheaper and more efficient, the question is how much longer can the status quo be maintained?

The answer, it turns out, may be for a good deal longer than many observers think. While the South African government has made some progress in recent years in expanding the country’s renewable energy capacity, coal is likely to remain the dominant source of power for the foreseeable future.

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