ABSTRACT

South Africa accounts for slightly under two-thirds of Africa's total power-generating capacity. With its large coal reserves, South Africa was able to take advantage of its comparative advantage in developing an energy intensive mining sector through the provision of low cost electricity. As things stand, energy in South Africa is increasingly seen as a major constraint on growth, new firm development and broad based employment creation. The Energy Architecture Performance Index (EIPA) and related sub-indexes for South Africa show several interesting patterns relative to other carbon-producing countries. South Africa's precipitate energy use closest resembles that of Mexico with both showing a steady increase in per capita energy use. The energy situation in South Africa has created several paradoxes. While coal has historically proved to be an easily accessible input for South Africa's power sector, this may not be the case for much longer.