– Targeting enhanced energy security
Cape Town, South Africa — The South African Cabinet has approved the South African Renewable Energy Masterplan (SAREM) for implementation, targeting energy security and broader industrial growth.
The plan seeks to address challenges associated with local capacity, infrastructure and investment by providing a roadmap for developing renewable energy and battery storage technologies. For investors, the plan identifies a clear pathway to advancing power projects as South African electricity demand is expected to rise two-fold by 2040.
The forthcoming African Energy Week (AEW): Invest in African Energies scheduled from September 29 to October 3 will explore how the SAREM will influence the nation's energy composition. This gathering aims to bring together leaders from African governments and policy-making bodies alongside representatives from energy companies and financial backers, all working towards attracting investments into Africa’s energy sector. The initiative aligns closely with efforts aimed at eradicating energy poverty across the continent.
AEW: Invest in African Energies stands out as the premier platform for project developers, investors, tech suppliers, and governmental entities. It has become the go-to location where significant agreements in the African energy sector are sealed. Consider paying a visit. http://www.AECWeek.com For additional details regarding this thrilling occasion.
South Africa aims for significant expansion within its renewable energy sector, working to enhance grid stability via substantial financial commitments towards both power generation and transmission facilities. Guided by initiatives like the updated Integrated Resource Plan (IRP), which was refreshed in 2023, South Africa plans to add approximately 29.5 gigawatts of new capacity by the year 2030. This includes an expected contribution of 14.4 gigawatts from wind sources along with another 6 gigawatts from solar projects. In their most recent solicitation under the IRP program, they have set out to secure around 6.8 gigawatts from renewables, alongside allocations for about 3 gigawatts from natural gas and 1.5 gigawatts from coal resources.
To realize these goals, the SAREM aims to leverage rising demand for renewable energy and storage technologies, with a focus on solar, wind, lithium-ion battery and vanadium-based battery technologies to drive industrial development in South Africa. The masterplan is anchored on four primary areas: supporting local demand for renewable energy and storage by unlocking system readiness; driving industrial development by building renewable energy and battery storage value chains; fostering inclusive development by driving transformation of the industry; and building local capabilities in terms of skills and technological innovation.
The SAREM is anticipated to boost the expanding South African renewable energy sector. As per the African Energy Chamber’s State of African Energy 2025 Outlook, both South Africa and Egypt are projected to maintain their positions as leaders in power generation across Africa in 2025.
The continent boasts more than 500 GW of potential renewable energy capacity, with approximately 80% located in North Africa and South Africa. Additionally, South Africa is among the nations at the forefront of nuclear-powered electricity production.
SAREM will foster development by enabling collaborations throughout the value chain, launching focused training initiatives, and tackling issues related to regulatory obstacles. Although SAREM offers substantial advantages for the renewable energy sector, the Cabinet has requested further enhancements to the master plan aimed at encouraging investment from financiers into these projects.
This includes the development of green hydrogen to meet international obligations of 5% blended fuel in aviation and maritime sectors by 2030.
During AEW: Invest in African Energies 2025, a multi-track program will explore how policies such as the SAREM will shape Africa’s energy landscape. A dedicated Energy Transition stage will investigate Africa’s strategic approach to driving a just transition, tackling key topics including Energy Security in Africa; Driving Local Value; Scaling-up Renewable Energy; and many more.
A Powering Africa stage will address fundamental challenges and opportunities surrounding Africa’s electricity market. For South Africa, panel discussions on Bridging the Electricity Gap; Energy Efficiency; Strengthening Public and Private Sector Collaboration; Energy Diversification, and more, will identify opportunities for investors and project developers.
In the meantime, an Invest in African Energies: Country Highlight on South Africa will explore the nation's energy sector, covering the progress of oil and gas initiatives as well as the rollout of large-scale renewable energy ventures.
Ranging from green hydrogen utilization to battery storage systems, as well as solar, wind, and natural gas, the spotlight will examine how an interconnected array of energy sources will shape the nation’s energy prospects.
