How social entrepreneurship in South Africa can help bridge the gap on current renewable energy crisis

What is Social Entrepreneurship?

Social entrepreneurship can be defined as the process by which individuals, startup companies, corporations or entrepreneurs develop, implement and fund solutions that directly address social, cultural and environmental issues. This concept of social entrepreneurship may be applied to a wide range of companies and organizations which vary depending on factors such as size, objectives and beliefs. A social entrepreneur is therefore a person or individual who explores various business opportunities that have a positive impact on a certain community, the society or the world at large.

Most people confuse social entrepreneurship with non-profit organizations, this isn’t the case, social entrepreneurship is somewhat a profit endeavour, even though its greater emphasis or goal is placed on creating social, cultural or environmental changes. To elaborate this further, profit entrepreneurs typically measure entrepreneurial performance using business parameters such as profit, revenues, increases in stock prices and others. However, since social entrepreneurs blend for-profit goals with the aim of generating a positive "return to society", they use different measuring metrics.

What are the major benefits of using social entrepreneurs to resolve the renewable energy gaps?

Social entrepreneurs are people who use their skills to create social change and are not motivated by making profit. Social entrepreneurs have been creating sustainable solutions for years, they are often found in developing countries and they work with a variety of organizations, including NGOs, governments and businesses. Innovative ideas and initiatives can be easily developed by social entrepreneurs, as they have a background in solving problems.?There are many benefits that come with using social entrepreneurs. For starters, they have a much better understanding of the problem than most people do which allows them to develop more effective solutions. They also have access to networks and resources that can be used in order to get their project off the ground. And finally, social enterprises can generate sustainable jobs or income for those involved in the project.

Social entrepreneurs have a clear vision of how they want to change the world.

History of The South African Energy Crisis

The South African energy crisis is still an ongoing challenge. South Africa has been experiencing widespread rolling blackouts as supply has been falling behind demand thus threatening to destabilize the national grid. This problem began in the later months of 2007 and continues up until now. The government-owned national power provider and primary power generator, Eskom , has been faced with so much criticism in the past couple of years due to several accusations of mild corruption and mismanagement which have led to the country undergoing extended periods of load shedding. Load shedding is conducted through a series of planned power outages to help maintain the state infrastructure which is struggling under the demand for energy expected of it. Corruption and mismanagement of the power provider, Eskom, most notably during the Jacob Zuma administration, have exacerbated the crisis. Chronic power shortages has occurred since 2007 in about 4 phases.

Here is a summary of the occurrences which nearly crippled the economy of South Africa

The first period of chronic power outages occurred in late 2007 and lasted until at least May 2008. Reports revealed that part of the problem was related to the short supply of coal to the coal-fired power plants. Numerous other causes for the power shortages have been postulated, including skills shortages and increasing demand for electricity around the country. At this period, Eskom was condemned for exporting electricity to the neighbouring African states while yet are incapable of meeting South Africa's demand. However, Eskom announced on 20 January 2008 that it had ceased to export power which brought relieve to the citizens of South Africa. The government claimed the shortage had caught them by surprise since the South African economy had grown faster than expected; however, their target growth rate of 6% per year was not reached from 1996 to 2004. Second period of power shortage begun in 2014 up to 2015. Reason being the Majuba power plant lost its capacity to generate power after a collapse of one of its coal storage silos on first of November 2014. Statistically, the Majuba power plant delivered roughly 10% of the country's entire capacity and the collapse abruptly stopped the delivery of coal to the plant. To make the situation worse, a second silo developed a major crack on 20th November causing the shutdown of the plant.?

The third period begun in February 2019 up to March 2019. This period of load shedding began when Eskom announced level four load shedding due to the temporary loss of generating capacity. This resulted in the dropping of about 4,000 MW of power consumption from the national grid. In around the mid of March 2019, extensive ongoing power cuts were implemented across the whole nation by Eskom as part of the level four load shedding. The fourth period of power shortage begun in December 2019 up to March 2020. Eskom resolved to implement a further round of load shedding commencing as from December 2019.? Unfortunately, South Africa experienced its worst power energy crisis as a result of load shedding named Stage 6 which was activated for the first time ever in December 2019. Eskom declared that out of its total nominal capacity of around 44,000 MW, it was completely unable to provide about 13,000 MW of the total capacity. This resulted in the nationwide blackouts. Not only did the COVID-19 pandemic disrupt the general lifestyle of common citizens but resulted in to an economic slowdown. Load shedding was largely suspended due to reduced demand for electricity. However, in May 2021, stage 2 load-shedding was implemented again following breakdowns of multiple power stations.? A forensic investigation was carried out and found evidence that recent damage to a coal conveyor at Lethabo was as a result of deliberate sabotage. Steel supports had been damaged severely, causing a power supply system to collapse. Recently, Eskom announced that level 2 load shedding would be re-implemented from 2nd February to 7th February 2022 due to the breakdown of two generating units at the Kusile and Kendal power stations.

Effect of energy crisis on the South African economy

The damage caused by power shortages is beyond mention. South Africa is known to supply about 85% of the world's platinum and over 30% of palladium. However, in January and February 2008, the global platinum and palladium prices hit record highs because the mines were first shut down and subsequently restricted in the amounts of electricity use. South African mining companies estimate that millions of ounces of both platinum and gold production will be lost every year till the crisis comes to pass. Estimates on the direct economic impact are not yet available, but given South Africa's reliance on exports of their precious metals to finance and run its current account deficit, the currency have been severely downgraded by economists and traders.

Although most banks and telecommunications companies have not been severely affected thanks to existing backup generator systems, as of November 2021, load shedding has led to diminished mobile network coverage, as backup batteries have also been stolen and most cellphone stations vandalized during periods of power outages. Retailers and wholesalers over the years have reported large losses due to spoiled frozen and chilled foodstuffs. Many large factories have also reported it impossible to carry the capital expense required to keep operations uninterrupted. For instance, large factories such as aluminium smelters who can be severely impacted by outages of longer than three hours, have guaranteed service-level agreements with Eskom and have been largely unaffected.

Big companies with both national and international investors have been impacted by the electricity crisis and have had no choice but to announce these effects to the international community, bringing the situation to the attention of potential foreign investors. This becomes bad for business. Small business owners in South Africa have also raised concerns saying? that load shedding was the number one challenge that they faced since 2019. In a small business report, 44% of business owners said that they had been severely affected by load shedding with 85% lamenting that it had reduced their revenue. 20% of them claimed that if load shedding were to continue at similar levels, they would have to consider retrenching their staff levels or even close their businesses.

Why going solar will be the best solution to the energy crisis in South Africa

Solar power is the key to a clean energy future. Every day, the sun gives off far more energy than we need to power everything on earth, unlike fossil fuels, it won’t run out anytime soon. As a renewable energy source, the only limitation of solar power is our ability to turn it into electricity in an efficient and cost-effective way. This is why South Africa needs the support of social entrepreneurs to fight of the energy crisis as well. The significant benefits of advocating for each household as well as business owners to go solar are numerous and here are the top most reasons;

Power outages are minimized or eliminated-Power shortages are normally due to a disruption somewhere between the electricity supplier and homeowners. The power plant may still be fully capable of producing electricity, but there could be a breach along the system such as a broken power line, which then prevents the power supply from reaching the consumer in that service area. However, going solar will combat this problem. It is of importance to note that although solar-powered homes that are connected to the grid contribute to the production of electricity, they are not immune to blackouts that affect the entire community. The only way to reduce your risk of suffering through a blackout is to store the solar power your system generates on-site. Doing so requires the installation of a solar battery backup system. This can add to the cost of going solar, but it does mean that your home will continue to run on electricity even when the rest of the neighbourhood cannot. South Africa is a consistently sunny country where most areas get roughly seven to eight hours of sunlight per day. This means that any personal solar PV system would have a regular supply of fuel to maintain its energy levels. However, research data shows that an average South African consumes 10kWh of energy per day which is roughly the same as the energy generated by at least five solar panels in a single day. For South Africans to depend on solar energy for just one day, each person would need five panels on their house which would be an expensive option. However, with the aid from social entrepreneurs, this dream can be turned into a reality. Social entrepreneurship will not only be an inspirational source of positive impact to their societies but will also help respond to their needs.

Social entrepreneurs could also liaise with Eskom to go solar. Although personal solar panels do certainly help move the country from its dependence on fossils such as coal, Eskom should work to introduce larger solar power systems to serve the entire country, as well as a number of other renewable energy initiatives. The citizens of South Africa will not be able to survive independently of the grid, meaning that should load shedding persevere, it will continue to affect businesses, public institutions and families and demoralize the nation as it sinks back into the dark ages. But if Eskom partner with social entrepreneurs, the problem of load shedding will no longer be a threat.

No fuel to burn-Another benefit is that upon solar panels installation, operational costs become quite low compared to other forms of power generation. Since fuel is not required then this means that solar power can create large amounts of electricity without the uncertainty and expense of securing a fuel supply.

Going solar reduces or eliminates monthly energy bills-Going solar drastically reduces or even eliminates your electric bills. Sincerely speaking, electricity costs comprise a large portion of your monthly expenses. In basic terms by having a solar system installed at your property either at home or office you can generate your own electricity, therefore reducing the amount of electricity you purchase from the grid, resulting in lowered electricity bills. Depending on the size of the solar system installed and your energy habits, these savings could see you have a return on investment in as little as 3-5 years.

It's estimated that an average South African family spends approximately $85 (R1235) a month on electricity alone. It's also estimated that electricity savings from instantly going solar can be significant, ranging from the low end of 50% to almost 75% savings. Because of the nature of solar as an up-front investment, the only costs associated with a solar system will be the installation costs and any added electricity costs in the event that your panels do not completely offset 100% of your electricity use. Whether your system will completely offset your electricity needs is primarily determined by how accurately you size your solar PV system. In the event that you have a perfectly sized solar panel system, you will generate free power for your home’s entire 25+ year lifespan. Wonderful, right? In other words, you could reduce your electricity bills by half, two-thirds, or pay no electricity bill at all.

Solar energy is environmentally friendly-By installing solar, you automatically reduce your own personal environmental footprint. Solar power systems derive clean, pure energy from the sun. Installing solar panels on your home will help combat greenhouse gas emissions and reduce greenhouse effect thus minimizing our collective dependence on fossil fuel. Most electricity is generated from fossil fuels such as coal, petroleum and natural gas. During the process of burning fossil fuels to produce electricity, they emit harmful gases that are the primary cause of air pollution and global climate change. Not only are fossil fuels bad for the environment, but they are also a finite resource. Because of this, the price is constantly fluctuating and can increase in a short period of time. This is the reason why going solar is important for our environment. In addition, renewable energy improves the general public health. Coal, petroleum and natural gas plants emit pollutants that cause air and water pollution. This is detrimental to human health and safety. However, replacing these fossil fuels with renewable energy sources such as solar power, will drastically reduce premature deaths as well as the overall health care costs.

In conclusion, solar panels are a great way to not only eliminate power shortages but to also offset energy costs, reduce the environmental impact of your home and provide a host of other benefits, such as supporting local businesses and contributing to energy independence.

Going solar is the best transition South Africans can ever make!

Solar energy; today’s resource for a brighter tomorrow!