IN THE five years to May 2016, SA’s electricity use fell 6%, leaving a substantial and growing hole in Eskom’s budget. Eskom’s response has been to try to suppress new competitors and encourage big new customers. In a single week in July, it announced:• It was negotiating with aluminium smelters to increase electricity use. Aluminium smelting in SA is predicated on access to cheap, (but dirty) energy;• It would not accept further independent renewable producers after the current round of tenders because of the potential effect on its revenue. The share of private renewable energy in national demand rose from 4% in 2011, to 8% in 2016;• It was trying to expand exports to the region in light of slow domestic demand.The first two strategies will entrench commodity dependence and promote energy intensity. Instead of fostering growth in new industries and emerging enterprises, they will reinforce Eskom’s effective partnership with huge metal refineries.Eskom’s dilemma is rooted in the en...
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