South Africa Launches Renewable Energy Master Plan To Drive 5GW Annual Growth

Recently, the South African government officially approved and launched the implementation of the South African Renewable Energy Master Plan, which clearly stipulates that by 2030, at least 3GW and up to 5GW of renewable energy installed capacity need to be added annually.

The plan will focus on solar energy, wind energy, and battery storage in the short term, aiming to build a low-carbon, reliable, and economically affordable energy system. The South African government defines SAREM as a document of "dynamic development" and will incorporate emerging technologies such as green hydrogen and waste to energy based on technological progress in the future.

To enhance the resilience and sustainability of the energy supply chain, SAREM proposes to vigorously develop local manufacturing capabilities for key equipment such as solar modules, inverters, wind turbines, cables, and batteries. It is expected that by 2030, this measure will create over 250000 job opportunities.

South African Minister of Electricity and Energy, Kgosientsho Ramokgopa, stated that SAREM is not only a blueprint for green industrialization, but also a path towards achieving a sustainable and equitable future. We have the opportunity to take a leading position in the global renewable energy and energy storage industry, promoting economic growth and job creation while protecting the environment

SAREM will also encourage the construction of industrial parks and special economic zones (SEZ) to promote the agglomeration and development of renewable energy manufacturing industries.

The South African Photovoltaic Industry Association (SAPVIA) welcomes the introduction of SAREM and points out that photovoltaic modules and their value chain have become a key policy focus area. In addition, localization opportunities also include manufacturing input materials required for photovoltaic brackets, inverters, electrical and civil balance systems (BoP).

According to the African Solar Industry Association (AFSIA), South Africa's newly installed photovoltaic capacity will reach 1.235GW in 2024, making it the only country in Africa to join the "GW Club". Currently, industrial and commercial projects as well as large-scale transmission projects remain the main growth drivers of the market.

According to the Global Solar Council, although South Africa's share of newly installed capacity in Europe decreased from 79% in 2023 to 46% in 2024, it still continues to lead the solar energy market on the African continent.