Small-scale embedded generation in South Africa: Implications for energy sector transformation from a local government perspective

Abstract

The falling cost of renewable energy technologies globally is a key driver of the implementation of small-scale embedded generation in South Africa as an alternative to electricity from the national grid. The technology has disruptive potential for the vertically integrated and centralised electricity value chain, dominated by Eskom. It challenges the structure and governance of the value chain from the local level up, creating conflicts and potential benefits for key stakeholders. A coherent policy approach, rooted in the understanding of the co-benefits, is key in managing and planning the scale-up of this technology at the local government level.