SOUTH AFRICA - Energy Governance and Climate Resilience Programme

The Energy Governance and Climate Resilience Programme (EGCRP) is a USD 300 million energy sector budget support (SBS) African Development Bank (ADB) loan to the Republic of South Africa (RoSA) in support of the Government’s Energy Transition. The programme is being designed to support economic recovery and the implementation of the Energy Transition. It will support the Government in its efforts to accelerate economic growth, reduce fiscal burden and implement energy sector policy, institutional and governance reforms to improve energy supply and ensure a just energy transition while safeguarding access and affordability of electricity for the poor. The expected outputs are a reduced Eskom debt burden, enhanced low-carbon and resilient energy systems; finance raised through carbon tax; increased budget allocation to ensure poor and indigent households have electricity and engendered incentives for households and MSMEs to invest in renewable energy. The package of reforms under the proposed programme is organised around three mutually reinforcing and complementary components: (1) transformed structure of the energy sector and improved governance of the public company, (2) climate change resilience and renewable energy production will expand the supply of renewable energy and contribute to emission reductions, (3) equitable/fair energy transition will promote dialogue on the implementation of a just transition, mitigating the impact of the energy transition on livelihoods, and provide poor communities and small businesses, including households and businesses run by women and young people, with affordable access to electricity.