Green Cape 2040: Towards a Smarter Grid

Policy Brief 4 of 2015. Western Cape Government Policy and Strategy Chief Directorate and Strategic Initiatives Chief Directorate in collaboration with the African Futures Project. Western Cape Government, Cape Town, South Africa.

Electricity is crucial for the economic and social development of South Africa, but disruptive changes loom on the horizon. It is now clear that Eskom is unlikely to keep its electricity prices lower than those of alternative forms of electricity production, most notably small-scale photovoltaic (PV). This analysis finds that a significant amount of revenue will be lost to PV uptake, but that policies aimed at investing in advanced metering infrastructure (AMI) and other smart technologies, changing the tariff structure and encouraging economic growth from domestic PV manufacturing, can reduce this loss.