Evaluating the challenges and opportunities for economic diversification in a just energy transition in South African municipalities: A case of Emalahleni local municipality

Abstract

This study investigated the potential challenges and opportunities related to implementing economic diversification in a Just Energy Transition, to mitigate the impact of the closure of coal mines and coal power stations as a result of the Just Energy Transition. The challenges and opportunities with regard to economic diversification in a Just Energy Transition were identified and characterised through a literature review. These were evaluated through a qualitative case study of the Emalahleni Local Municipality, based on real-world observations from key stakeholders. Stakeholders from the different spheres of government with various roles in the implementation of the Just Energy Transition were interviewed, based on questions about challenges and opportunities in economic diversification in the Just Energy Transition.

The findings highlighted the need for a coordinated effort across government spheres, private-sector engagement, infrastructure investment, policy coherence reform and strategic funding mechanisms to ensure a sustainable and equitable transition. It further found that a successful Just Energy Transition requires increased capacity-building at the municipal level and substantial investment in infrastructure development.

In conclusion, better policy coordination, infrastructure development, private-sector involvement, financial accessibility and global collaboration are required to support Emalahleni’s transition to a more diverse and sustainable economy.

The research findings can be generalised beyond the immediate case study to other municipalities with a similar context, based on the theories accepted and rejected. Successful economic diversification in a Just Energy Transition may, therefore, be possible in other municipalities with medium-sized towns reliant on coal mining and energy generation, provided that a comprehensive approach that integrates intergovernmental and private-sector collaboration, robust policy and regulatory frameworks, infrastructure investment and adequate financial resources is adopted.