Quantifying the Macro- and Socio-Economic Benefits of a Transition to Renewable Energy in South Africa

For decades cheaper and easily available fossil fuels has underpinned the energy system of South Africa inhibiting the potential for a sustainable low carbon economy. Favourable developments in renewable energy technologies, and prices, provides an opportunity for the country to significantly reduce its emissions without sacrificing economic development. This paper assesses the technical potential for renewable technologies in electricity production and the associated economic implications of a transition to renewable energy in South Africa. This is done by comparing two energy pathways for the country, one in which the deployment of renewable technologies is constrained and another in which it is not. Our findings show that over the next two decades renewable energy technologies will become the largest contributor to electricity generation in the country under least cost unconstrained planning. At the national level the shift to renewable energy has a positive impact on real GDP and employment despite the presence of a smaller coal mining sector.