Stated energy transition goals Energy policy priorities Reduce GHG emissions to 398-510 Decommission the retiring coal generation Build new-energy vehicle metric tonnes CO e by 2025, and to 昀氀eet, in line with a revised Integrated Resource supply chain localization and 2 350-420 metric tonnes CO2e by 2030 Plan and in tandem with the development of set the base for new-energy Achieve net-zero emissions by 2050 renewable energy generation at scale vehicle manufacturing Strengthen transmission grid infrastructure to Become a world-leading accommodate the shift to renewable energy exporter of green hydrogen White Paper all outline the country’s policy Country analysis foundation for energy transition, “an increased focus on a diversi昀椀ed energy mix that includes Key progress on ETI renewable energy, distributed generation and 120 and a move away from battery storage” South Africa, the second-largest economy in Africa, carbon-fuelled energy. The Renewable Energy has a large energy sector and ranks 82 out of Independent Power Producer Procurement 120 countries on the ETI 2023. The country has Programme, introduced in 2011, was a competitive improved its overall ETI score by 6% since 2014. tender process designed to facilitate private- South Africa’s system performance scores have sector investment into grid-connected renewable improved, supported by better performance in energy generation. The programme’s sixth round energy access, electricity and clean cooking fuels. got under way in 2022, in line with the 2019 While scores in the sustainable dimension are Integrated Resources Plan, aiming to procure 2.6 121 accelerating due to the reduced energy intensity, GW of solar and wind power. To encourage signi昀椀cant challenges remain. The energy transition the self-generation of renewable energy, the in South Africa has historically been an uphill battle, government scrapped the 100 MW licence- even though the share of renewable energy has exemption threshold for distributed generators increased over the past 10 years. The country still and proposed a feed-in tariff for self-generating 122 Moreover, the South derives about 70% of its electricity from coal, the households and businesses. carbon intensity of the energy mix remains high, Africa Hydrogen Society Roadmap, published and clean energy sources only constitute around in February 2022 and focusing on national 118 ambitions, sector prioritization, the overarching 13% of the total energy mix. policy framework and the macroeconomic Key imperatives and policies in place effect of the hydrogen economy throughout South Africa, is an important milestone for the Recent announcements for net-zero emissions 123 country as it navigates its energy transition. by 2050 constitute steps in the right direction and indicate the increase in political commitment and What’s next? strengthening regulatory environment. Several policy developments and measures have been put in Debt and mismanagement have rendered Eskom, place to help the country accelerate its clean energy a public electricity utility, vulnerable and caused transition. As reported by Global Compliance capacity gaps resulting in load-shedding, frequent News: “At COP 27 in November 2022, South Africa electricity blackouts and a lack of affordable launched its new Just Energy Transition Investment and secure power. In the immediate term, the Plan (JET IP) and announced a 昀椀ve-year investment government has put amendments in place to plan for the $8.5 billion 昀椀nancing package, address the electricity supply de昀椀cit. South Africa’s which was announced as part of the country’s energy transition nevertheless faces challenges Just Energy Transition Partnership with France, in the medium to long term, including key players Germany, the United Kingdom, the United States in昀氀uencing policy formulation and having an and the European Union at COP26. The JET IP is incentive to support coal, as well as economic and aligned with the Cabinet-approved National Just social fallout from the loss of jobs and livelihoods Transition Framework and outlines the investments in the coal industry. Room exists to speed up required to achieve the country’s decarbonization actions to decarbonize the energy mix through commitments, while promoting sustainable energy ef昀椀ciency measures, the development of development, and ensuring a just transition for renewables, electri昀椀cation, and the use of carbon affected workers and communities. … The JET IP capture technologies. Still, given the importance covers electricity, new energy vehicles (NEVs) and of extractive industries in South Africa, additional green hydrogen, and identi昀椀es $98 billion in 昀椀nancial opportunities exist to ensure an equitable transition requirements over the next 昀椀ve years, to come from by creating a high-level centralized body to manage both the public and private sectors.”119 the process, engaging all stakeholders early and often, promoting transparency and accessibility South Africa’s National Development Plan, draft in the policy process and forming a supportive Integrated Energy Plan and Renewable Energy legislative framework. Fostering Effective Energy Transition: 2023 Edition 58