As the world transitions from traditional, centralised power generation to more decentralised, digitally integrated systems – driven by decarbonisation imperatives – South Africa’s energy sector is also undergoing a significant transformation towards a more diverse energy mix that includes renewable energy, particularly wind and solar.

In South Africa, however, this shift is driven not only by environmental imperatives, but also by the need to ensure energy security and to support economic growth, according to the ‘Scoping opportunities for digitalisation in the South African energy sector 2025’ report.

The report, launched on October 8, was commissioned by the Secretariat of the South African-German Energy Partnership – a partnership between the German Federal Ministry of Economic Affairs and the South African Department of Electricity and Energy – hosted by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).

The report examines digitalisation in the energy sector globally and in South Africa to identify opportunities to advance the country’s energy sector into a new era of growth and sustainability.

“Digitalisation is emerging as a critical enabler, enhancing production, optimising distribution and improving consumption, while aligning with the country’s Fourth Industrial Revolution (4IR) agenda to leverage technology for socioeconomic development,” the report notes.

During the launch, which took place at the ninth biennial Council for Scientific and Industrial Research (CSIR) conference held in collaboration with the Global Sustainable Technology and Innovation Community (G-STIC), EY senior specialist consultant Rashid Khan explained that the report was commissioned to explore digital opportunities within the energy value chain.

He explained that the report highlights six critical research topics, namely asset management, cybersecurity, advanced metering infrastructure, digital infrastructure, market-driven flexibility and AI.

“In looking at those various research topics, what . . . emanated from the research was a variety of opportunities . . . from generation through to measuring and accounting . . . and the report goes on to explain those opportunities [and] why those opportunities should be looked at; what will allow us to embed such opportunities within South Africa better,” he said.

The report highlights key polices and legislation in South Africa’s energy sector, including the Roadmap for State-owned Eskom in a Reformed Electricity Supply Sector, the Energy Action Plan and the Integrated Resource Plan.

It argues that ongoing liberalisation is driving major structural changes, including a significant increase in independent power producers (IPPs) and expanded renewables capacity, noting that this shift increases generation capacity, reduces unserved demand, decarbonises electricity production and creates jobs.

Despite these advancements, the report argues that the lack of comprehensive policies and regulatory frameworks could hinder digitalisation, explaining that policymakers, business leaders and other stakeholders must increasingly make complex decisions, often with incomplete information.

“South Africa’s energy sector is at a critical juncture, with digital transformation increasingly viewed as essential to addressing inefficiencies, enhancing grid stability and supporting the energy transition,” it notes.

ADVANCING SCIENCE, TECHNOLOGY, INNOVATION

Speaking at the conference, Science, Technology and Innovation Minister Professor Blade Nzimande emphasised the importance of a sovereign research agenda for Africa’s capacity to develop sustainable solutions for some its most urgent challenges, such as food sovereignty and energy security.

Hence, the Minister highlighted the need for climate resilient technologies and to ensure that Africa had credible pandemic-preparedness capacity.

Nzimande also argued that a sovereign research agenda would ensure that Africa did not fall behind with regard to advancements in AI and being reduced to importers and consumers of AI solutions.

“As a continent, we must contribute to AI. The development of a sovereign research agenda for Africa is absolutely critical,” he said.

Additionally, Nzimande noted that South Africa had developed local capacity to produce coronavirus-related vaccines and vaccines for other diseases common in South Africa.

The Minister also reflected on the importance of advancing science, technology and innovation (STI) under the current geopolitical environment where the world was confronted with a complex set of interconnected global challenges.

He thus called for collaboration to address these challenges, urging the intentional mobilisation of all the available scientific knowledge in the world to develop sustainable responses to these challenges.

“As we confront the urgent challenges of our time, we must recognise that STI carries the power to shape societies and economies, and also to shape the kind of future we want and which we indeed can have.

“Therefore, as policy makers, scientists, researchers and innovators, we carry a huge responsibility to ensure STI serves the public good, advances social justice and contributes to a more equitable and sustainable global world order.”

Also speaking at the launch, CSIR CEO Dr Thulani Dlamini similarly discussed the implications of AI, highlighting its benefits in terms of aspects such as efficiency and safety, as well as noting its risks in areas such as job displacements and ethical concerns.

“AI has incredible potential to improve our lives, improve healthcare, the economy and knowledge, but it also brings significant risks that require thoughtful governance, transparency, ethics, inclusive policy making and regulation,” he said.

Dlamini expressed that science could be a “double edged sword”, noting that, if used correctly, it could be a force for positive change, but also warning that if used incorrectly, it could cause harm.

“Together, we can ensure science becomes the light that guides humanity to a sustainable future,” he said.

In a similar vein, Parliamentary Portfolio Committee on STI chairperson Tsakani Shiviti argued that STI had the potential to address systematic issues in South Africa, such as high levels of unemployment, climate change and energy constraints.

Shiviti thus emphasised the importance of approaching STI as an integral strategic pillar of national development.

“We are living through overlapping crises, climate change, energy insecurity, economic inequality and global instability. Yet, we are also standing on the cusp of remarkable opportunity.

“Scientific breakthroughs in renewable energy, biotechnology, digital platforms, material science and AI offer new hope if we apply them widely and inclusively. Let me be clear . . . innovation is not a luxury, it is a development imperative,” she said.