TIPS_Industrial_policy_and_the_electricity_value_chain_June_

The disruption in the electricity system arose from the failure of Eskom to adapt its business model to the slowdown in the mining value chain; growing contestation over coal rents; and the emergence of new, more competitive and cleaner electricity sources. [...] At the macroeconomic level, the impacts emerged in the increase in Eskom and municipal revenues relative to the economy; falling demand for grid electricity; and in 2020, during the COVID-19 pandemic, the fact that the recovery in electricity use lagged the return to production. [...] The following section provides an overview of the impact of the disruption in the electricity system on the mining value chain, with a separate section on the ferroalloys and aluminium refineries. [...] The share of alloys in overseas sales by the chrome and manganese value chains declined from over 80% in the early 2000s to under 40% by the end of the 2010s. [...] The impact of the deterioration in the electricity system varied substantially by municipality, however, depending on the extent of electrification, broader trends in the regional economy, and the quality of municipal management.