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A call to tackle South Africa’s energy crisis at the International Commodity Summit 2025

6th March 2025

     

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As South Africa grapples with the return of Stage 6 load shedding, the International Commodity Summit 2025 set to convene from July 14-17 at the Cape Town International Convention Centre (CTICC) aims to provide sustainable solutions to counter South Africa’s energy crisis. The summit aims to tackle the root of South Africa’s energy crisis, and discuss innovative solutions to the nation’s ongoing energy challenges.

The persistent electricity shortages have created substantial economic challenges, and has affected not only South Africa but also neighbouring nations grappling with similar issues. The practice of load shedding continues to interfere with business and manufacturing operations, resulting in decreased efficiency, financial losses, and higher operational expenses.

In 2022, loadshedding cost the South African economy around R560 billion, and in 2024, Eskom's loss before tax was R25.5 billion, and its loss after tax was R55 billion. This was due to several factors, including loadshedding, electricity theft, and other operational and financial challenges. This spilled over into the South African economy with small and medium-sized businesses particularly vulnerable to these power interruptions, often lacking the financial means to acquire backup power systems.

The wider economic consequences of loadshedding include deterred foreign investment, impeded growth, and increasing joblessness, all of which are intensified by an unreliable power supply that erodes investor trust.

“The energy crisis we are experiencing is not just a local issue; it affects Africa as a whole. Therefore, we must come together to explore sustainable energy solutions,” said Cherrylee Samson, Vice President of Hibarri.

“This summit will serve as a platform for collaboration and innovation, aiming to create a resilient energy infrastructure for South Africa and its neighbours”, said Samson.

The summit aims to address not only South Africa's challenges but also the severe power shortages faced by Zimbabwe and Zambia, which have been enduring up to 19 and 21-hour daily outages, respectively.

 The urgent need for sustainable energy alternatives is clear as countries across the continent confront debilitating power cuts that threaten economic stability and growth.

Eskom, South Africa's state-owned utility, has been at the centre of the crisis, grappling with deep-rooted issues such as corruption, financial mismanagement, and aging infrastructure. With a massive debt burden exceeding R440 billion, Eskom’s ability to invest in necessary maintenance and new projects is severely constrained.

 The ICS2025 proposes that regulatory and policy changes are crucial for reducing the impact of loadshedding in South Africa. Establishing a uniform system allowing households to sell surplus solar energy to the grid would promote solar adoption and enhance energy stability.

Additionally, reintroducing tax benefits for solar equipment purchases, including rent-to-own options, could make solar systems more accessible to a wider range of people. Moreover, streamlining the approval process for small-scale embedded generation projects would accelerate the adoption of solar technology.

An alternative approach involves upgrading the grid with smart technology. This includes enhancing the grid's capacity to manage decentralized power inputs from numerous small-scale generators, enabling real-time monitoring, and efficiently distributing electricity from various sources. Furthermore, South Africa could implement a comprehensive battery system to store excess renewable energy produced during low-demand periods, ensuring a steady supply during peak hours.

The summit aims to shine a light on these systemic problems and discuss strategies for reform that can revive the utility’s operational capabilities while fostering a competitive business environment.

The International Commodity Summit 2025 promises to be a pivotal gathering for stakeholders invested in finding solutions to South Africa's energy insecurity. Through collaborative dialogue and innovative thinking, participants will seek actionable pathways to ensure a stable and sustainable energy future for the region.

 

Edited by Creamer Media Reporter

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