Low- and middle-income countries are facing the dilemma of simultaneous decarbonisation and industrialisation in the context of an electricity supply crisis. The energy transition is complex and holds significant economic risk. It requires strong governance and a capable state as well as coordination. This requires the state to adopt policies that balance social, economic and climate objectives while reviewing past policies that may no longer be appropriate. This paper discusses two policy approaches to an energy transition: the de-risking approach and the investment-centred approach, and using a South African case study, argues for the necessity of an investment-centred approach to achieve a transition which supports local development and energy security. In analysing the example of South Africa's Renewable Energy Independent Power Producers Procurement Programme (REIPPPP), we highlight important learnings for the energy transition which can be used by other countries in the global South. In our conclusion we identify key fiscal, energy and industrial policies which can support a just transition.
Taylor et al. (Sun,) studied this question.