A review of policy options for clean electricity supply in South Africa

South Africa accounted for more than one-third of the total energy-related CO
₂
emissions on the African continent. South Africa's energy and electricity supplies are dominated by coal. The country's energy mix is expected to shift considerably towards renewables over the next two decades. This paper examines policy options for promoting such a shift to clean electricity, in order for South Africa to achieve its commitments under the Paris Agreement, while not losing sight of social development goals. As context, the current status of South Africa's energy supply is firstly outlined. Next, the various government policies related to energy and sustainable development is examined. The paper supports the imposition of a carbon tax in South Africa, but recommends that such a tax should be ring-fenced to fund renewable energy tax incentives. Moreover, environmentally-related taxes could be used to replace the existing electricity levy, thereby assisting low-income households in the process of electrification.