Estimates show R600 bln needed to facilitate SA’s energy transition

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It’s estimated that at least R600 billion will be needed by 2030 to facilitate South Africa’s energy transition. This as South Africa gradually paves its way to move from fossil fuels to clean energy.

This came out of the Development Bank of Southern Africa (DBSA) and the World Economic Forum (WEF) roundtable in Sandton under the theme “Mobilising Investments for Clean Energy in South Africa.”

In 2015, countries across the world signed the Paris Agreement, which is a legally binding agreement between countries to strengthen global countries’ ability to deal with the impacts of climate change.

The DBSA says it has set aside $200 billion for green energy-related projects. The bank says this is part of its contribution to realising the Just Energy Transition to achieve the country’s goal to reach net-zero emissions by 2050.

“Two hundred billion US dollars is set aside for embedded energy solutions and other energy-related energy projects,” says Boitumelo Mosako, DBSA CEO.

However, the Department of Trade, Industry and Competition (DTIC) says it’s worried that industrialists are left out as the country aims to reach net-zero emissions by 2050.

“We need to be part of a solution and we can’t be left out … we can’t be left without jobs,” says Malebo Mabitje-Thompson, Acting Director General at DTIC.

At the same time, the Independent Power Producers Office says a public-private collaboration is important as the country moves to clean energy.

“We need to work together. Unemployment is a huge issue that needs to be addressed,” says Bernard Magoro: Head: Independent Power Producers Office.

The DTIC says as renewable energy is introduced, poor communities must not be left behind.

Meanwhile, DBSA says the country’s poor education outcomes must be addressed as they are a barrier to supporting the move to decarbonize South Africa.