South Africa’s Sustainable Energy Future
Implementing South Africa’s Just Energy Transition
South Africa’s Just Energy Transition
South Africa faces significant climate, energy, and transition risks due to its reliance on fossil fuels, alongside high levels of poverty, inequality, unemployment, and energy insecurity. To address these challenges, the Just Energy Transition (JET) aims to transition the economy from fossil fuels to cleaner energies and accelerate the decarbonisation of key sectors.
The JET supports South Africa’s commitment to reducing emissions to 350-420 MtCO2-eq by 2030, as outlined in the 2021 Nationally Determined Contribution (NDC). Achieving this goal will require an estimated ZAR 1.5 trillion in investments over five years, supported by international financial aid, private investors, and development institutions. The plan also includes developing green hydrogen, electric vehicles, and other initiatives for a low-carbon future.
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Why it matters?
The JET Investment Plan 2023–2027 (JET IP), based on the Just Transition Framework approved in 2022, commits to an energy transition rooted in justice for South Africa. It aims to protect vulnerable workers and communities, enhance energy security and access, drive industrial growth, innovation, and economic diversification, and foster inclusive development. The shift from fossil fuels to clean energy will improve air quality, benefit the environment, and bring socio-economic gains.
The six portfolios of the JET:
1Electricity Portfolio
2Mpumalanga Just Transition (JT)
3New Energy Vehicle (NEV) sector
4Green Hydrogen (GH2)
5Skills Portfolio
6Municipal Portfolio
- South Africa’s electricity sector is central to its efforts to establish a low-carbon economy.
- Electricity generation accounted for 43% of the country’s greenhouse gas (GHG) emissions in 2000 and 45% in 2020. The majority of these emissions are generated by 15 coal-fired power plants owned by Eskom.
- South Africa’s ability to meet its decarbonisation goals in the electricity sector will depend on its ability to manage a planned and integrated programme of four parallel efforts:
- Large-scale and distributed Renewable Energy (RE) generation
- Large-scale transmission network extension
- Widespread upgrades of distribution systems
- Decommissioning, repurposing, and repowering with RE, the coal power stations which reach end of their economic life, without disrupting electricity supply, and in a way that proactively supports the affected workers, communities, and value chains to transition into new economic opportunities.
- South Africa has multiple structural and strategic advantages that underpin its development ofthe global green hydrogen (GH2) market, including world-class renewable energy resources, ample land for development, significant group metals reserves, and beneficiation technology.
- By leveraging these structural advantages, South Africa can develop a competitive GH2 ecosystem in the region that can help preserve and grow a resilient industrial base.
- South Africa’s GH2 production can enable cost-effective decarbonisation of existing downstream industries, such as steel, cement, petrochemicals, and heavy-duty transport by enabling a 10%–15% emissions reduction in these sectors.
- Skills are critical enablers for the JET and the growth of the South African economy. National level co-ordination, strategic support and local level alignment will be required for the successful implementing of the JET.
- The JET IP skills portfolio will contribute towards building a well co-ordinated, responsive, resourced, and effective skills ecosystem that involves labour, communities, business, and government to ensure that South Africa has an employable, skilled, and capable workforce that will grow the renewable energy sector, the NEV sector, and the GH2 sector and their respective value chains.
- Coherent skills anticipation, where labour market actors identify and prepare to meet future skills needs, must aim to avoid potential gaps between skills demand and supply – for both the short- and long-term trajectories of economic growth.
- Municipalities have a critical role to play in providing modernised electricity distribution systems that will ensure affordable access to electricity by the communities and businesses they serve.
- The increasing role of embedded renewable energy generation gives rise to new challenges and opportunities for municipal services provision, including the need for wheeling arrangements and feed-in tariffs.
- There are signiciant backlogs in municipal distribution infrastructure maintenance, and limited municipal capacity to plan, finance, and manage the scale of investment needed.
- Given the widely varying complexities that confront local government, the municipal energy transition needs a focussed and collaborative approach across national, provincial, and municipal spheres of government to manage the significant financial, technical, and managerial challenges and risks of the transition.
- The JET provides Mpumalanga with an opportunity to diversify from a coal intensive economy to a knowledge, service, technology-based, and green economy that will foster more jobs and attract new skills and investment to the Province.
- Mpumalanga already has well-connected infrastructure networks that include roads, railways, broadband, and electricity transmission lines.
- The Province has a well-established agricultural sector and possesses nearly 50% of South Africa’s high potential arable land, positioning it to take greater advantage of opportunities in agriculture and tourism.
- Mpumalanga has a strong private sector with a range of resources, and hosts a number of multinational companies with high-skilled workforces, which are in the process of transitioning their operations to net-zero.
- With one of the youngest populations in the country, Mpumalanga offers opportunities for the growth of new industries.
- The Mpumalanga provincial government has developed a series of plans, including the Mpumalanga Green Economy Development Plan (MGEDP), that seek to address the challenges and opportunities presented by the Just Transition in the province.
- The global shift to new energy vehicles (NEVs) and the need to decarbonise transport sets the impetus for a transition in the local automotive sector in a manner that must protect sector employment and promote new growth in sustainable manufacturing.
- As the European markets for South Africa’s automotive exports become increasingly regulated to exclude internal combustion engine vehicles, South Africa’s transition to NEVs is essential.
- Local adoption of NEVs is an important part of ensuring the sustainability of the automotive manufacturing sector, and will accelerate decarbonisation, result in cleaner public and private transport systems, and support healthier cities.
- The JET will promote NEV growth pathways in logistics, last mile delivery, public transport, as well as developments in the battery value chain.
Upcomings portfolios to be added:
South African Renewable Energy Masterplan (SAREM)
SAREM is designed to accelerate South Africa’s shift to renewable energy, fostering economic growth and reducing carbon emissions.
Energy Efficiency
Energy efficiency aims to reduce energy consumption through optimised technologies, minimizing waste while maintaining productivity.
Road-to-rail
Focuses on shifting freight transportation from roadways to railways, reducing congestion, lowering carbon emissions, and improving energy efficiency, while promoting sustainable logistics solutions.
The Latest Articles
Key JET IP Documents
Investment Plan
South Africa’s commitment to a low-carbon economy is outlined in the Just Energy Transition Investment Plan (JET IP) 2023-2027. Guided by national energy and climate policies, the JET IP…
Implementation Plan
At the launch of the JET Investment Plan 2023-2027 on 4 November 2022, President Cyril Ramaphosa tasked the Presidential Climate Commission (PCC) with…
JET Investment Register
The Investment Register serves to set out a comprehensive view of the financial resources allocated to support the Just Energy Transition Investment Plan (JET IP) through various financing mechanisms, including grants, concessional loans, commercial debt, and equity investments. This register is critical in facilitating an assessment of the effectiveness, efficiency, and progress of the investments provided by various international and domestic sources to support South Africa’s transition towards a low-carbon and climate-resilient economy.
Key Milestones
2021: Launch of South Africa’s Just Energy Transition
In 2021, South Africa’s Just Energy Transition (JET) was officially launched during COP26. The International Partner Group (IPG), consisting of the European Union, France, Germany, the United Kingdom, and the United States, made a landmark commitment of US$ 8.5 billion. This funding would support South Africa’s transition through a combination of grants, concessional loans, commercial debt, and equity. This marked the beginning of a critical journey to shift the country towards a sustainable energy future.
Our Approach
R1.5 Trillion Investment Plan for a Just Transition
Prioritizing support for South African communities and workers while decarbonizing the electricity, green hydrogen, and new energy vehicle sectors.
Decarbonisation as an Economic Growth Catalyst
Fostering South Africa’s economic diversification, industrialization, and localization, with benefits in skills development, employment, and livelihoods.
Institutionalising Just Energy Transition
Establishing structures across South African government and society to drive the Just Energy Transition forward.
Key Principles Guiding the Just Energy Transition
The Just Energy Transition is driven by core principles that ensure a fair and inclusive shift towards a sustainable future for South Africa:
Principle 1
Equity
Ensuring fair treatment and opportunities for all, particularly for those most affected by the transition.
Principle 2
Economic Diversification
Promoting new industries and sectors to reduce reliance on fossil fuels and foster economic resilience.
Principle 3
Inclusivity
Involving all stakeholders—communities, businesses, and government—in shaping the transition.
Principle 4
Sustainability
Committing to long-term environmental and economic sustainability to secure a better future for generations to come.
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Reach Out and Connect!
- Opportunities for individuals or organisations to participate or support the transition
