Energy in South Africa
South Africa’s long dependence on imported oil and domestic coal leaves it ill prepared to navigate the Fourth Industrial Revolution and decarbonization. In 1998, after a long history of state intervention in energy markets, post-apartheid policy set new market-orientated reform goals. Following a promising start, the pendulum swung back towards state intervention. In 2018 a combination of factors, including an electricity supply crisis, brought about indications of a return to market reforms, albeit an attenuated version thereof, particularly in power generation. Petroleum markets have been stuck in impasses associated with old-style regulation and social policies entangled in price regulation. Mismanagement and corruption have taken a toll as has private investor insistence on financial support. Good progress has been made in electrification, electricity subsidies for the poor, gas infrastructure, and renewable power capacity auctions. Technological innovation in renewable power offers reduced economies of scale and much promise for energy markets.