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South Africa has had its fair share of energy challenges in recent years. Even though
there are signs that the energy situation is improving, our long-term energy problems will
not be solved unless we use the lessons learnt in the past to implement improvements
for our future.

The lessons learnt are:
• South Africa does not have enough energy to support a 4–5% growth rate, even if
plant maintenance improves further and new generation comes on line.
• South Africans are still wasting a lot of electricity – and as individuals and businesses,
we have the capacity to contribute to our own energy solutions.

In this article, we outline the current energy challenges faced by all South Africans. We
then take a closer look at how the Western Cape Government (WCG) is tackling these
challenges. We go on to explain how the path to an energy-secure future depends on
improved energy efficiency, more installations of rooftop solar power and solar geysers,
and new solar, wind, and natural gas capacity on a utility scale that municipalities can
access.

In short, we are issuing a call to action to every resident and business in the Western
Cape to contribute to the energy security of the Province.

The South African Energy Landscape

Security of energy supply is fundamental to every modern economy. As witnessed
during the recurring national power outages in 2015, the disruption of electricity supply
not only has an adverse impact on the personal lives of consumers, but also impacts
negatively on economic growth and the credibility of South Africa as an investment
destination.

Figure 2 Electricity Generated in South Africa

Source: StatsSA

18 QUARTERLY ECONOMIC BULLETIN 2016