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The City of Cape Town v. National Energy Regulator of South Africa and Minister of Energy - decision

Filing Year For Action

With the goal of diversifying its electricity consumption with less reliance on the existing sources of energy, the City of Cape Town decided to purchase more renewable energy from independent power producers (IPPs). Despite following the required steps to seek consent from the Minister of Energy to approve the purchase of solar and wind power from an IPP, the Minister failed to respond for over two years. The Minister eventually communicated that all applications were on hold for an indefinite period. 

The city asks the court to issue an order declaring that the Minister of Energy’s consent is not required for an IPP to establish a new power plant and supply electricity to the City. Alternatively, the City requests an order declaring section 34 of the Electricity Regulations Act 4 of 2006 (ERA) unconstitutional and invalid because it impermissibly imbeds upon the constitutional powers and functions of local government. The City argues that it has a constitutional right to procure energy in the manner it deems best. 

On August 11, 2020, the court postponed the application since it considered the issue an intergovernmental dispute that should be settled outside the court, and referred the dispute back to the parties. The application is postponed indefinitely. 


The City of Cape Town v. National Energy Regulator of South Africa and Minister of Energy

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

This sector involves the wholesale and retail selling of goods.

A subsidy is a direct or indirect payment to individuals or businesses, typically provided as a government cash payment or a specific tax reduction.

Any compulsory, unrequited payment to the government levied on corporations or individuals. This can be for environmental reasons, such as introducing a Carbon tax to set a price that emitters must pay for the greenhouse gases they emit.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Social protection systems consist of policies that help people manage social risks in order to prevent poverty and maintain decent incomes and living standards

Kinetic energy of airflow transformed into useful energy, mostly electrical energy.

Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

Production of electricity and heat from solar irradiation.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

A company that is owned wholly or partially by the state, typically operating in key sectors.

Direct investments by the governments using public funds. This can be to support climate initiatives or integrate climate into other projects.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

Codes and standards are regulatory instruments that specify minimum standards to protect health and safety. This ranges from performance standards, which prescribe outcomes while allowing flexibility to achieve compliance, to the more prescriptive approach of technology-specific standards.

Activities of government agencies and institutions that provide public services, enforce laws and manage public resources.

This sector involves activities that impart knowledge and skills to individuals, including formal schooling, vocational training and educational support.

Fossil gas, commonly known as natural gas, is a fossil fuel consisting chiefly of methane with smaller amounts of other hydrocarbons and trace gases, found in underground deposits.

The City of Cape Town v. National Energy Regulator of South Africa and Minister of Energy - decision

Policy instrument

Just transition

Renewable energy

Fossil fuel

Economic sector

Finance