Summary of African energy storage subsidy policies

What is energy subsidy reform in South Africa?

In Sub-Saharan Africa: Experiences and Lessons, the government introduced public information campaigns explaining the regressive nature of the subsidies and linking the savings from petroleum price increases to priority social spending. This refers to the process of removing or reducing energy subsidies in South Africa.

Does South Africa's policy environment recognise energy storage?

The literature review and case studies revealed that a policy environment that recognises and signals the strategic value of energy storage can direct and enable development and investment in the sector. South Africa’s policy environment, represented by the IRP 2019, recognises ESS but only as a generation asset.

What are energy fiscal policies in South Africa?

Energy fiscal policies (of which fossil fuel subsidies are a subset) in South Africa have historically been framed around distributive aims, particularly in the post-Apartheid state.

Why is reforming energy subsidies important in Sub-Saharan Africa?

Reforming energy (fuel and electricity) subsidies in sub-Saharan Africa (SSA) is critical to ensuring future energy supply in the region and realizing Africa’s growth potential.

Does South Africa need a definition of energy storage?

For South Africa, this would require revisiting the need to amend the ERA to include a definition for energy storage, assessing whether this is necessary and how this can be achieved with minimal disruption and delay.

Why does South Africa spend so much on energy subsidies?

Most current subsidy spending is directed to propping up existing energy industries rather than promoting the transition to clean energy. The South African government has committed to reducing carbon emissions under both domestic policy and international treaties.