The South African government has announced plans to invest R2.2 trillion, representing about 30% of the nation’s gross domestic product (GDP), in a comprehensive energy strategy aimed at resolving the country’s long-standing electricity crisis and jump-starting economic growth.
Minister of Electricity and Energy, Dr. Kgosientsho Ramokgopa, disclosed this on Sunday, saying the government is determined to resolve the electricity crisis through the Integrated Resource Plan (IRP).
“As a result of the lights being off, the South African economy has not been able to grow. Electricity has been a structural constraint to the South African economy,” Ramokgopa said.
He highlighted how persistent power shortages have stunted economic development and contributed to high unemployment rates.
“Now that we have turned the corner on load shedding, we are addressing the future. Energy now ceases to be a crisis; energy and electricity are going to be a catalyst for growth,” he added.
The IRP aims to address electricity supply challenges, promote economic growth, and create jobs, targeting a 3% GDP growth rate by 2030.
“There is no economy that grows if the lights are off. There are no industries that will decide to locate in South Africa if we can’t guarantee them reliable, good-quality, and affordable electricity.”
The plan introduces a dramatic shift in the country’s energy mix, with cleaner energy sources such as hydro, nuclear, wind, and solar set to surpass coal for the first time in the nation’s history.
By 2039, the government aims to add 105,000 megawatts of new generation capacity—effectively building Eskom “two and a half times” its current size.
Key highlights include: 11,270 MW of solar photovoltaics (PV) by 2030, 7,340 MW of wind energy, 6,000 MW of gas-to-power, and 5,200 MW of new nuclear capacity
Currently, 58% of installed capacity comes from coal, with 10% from rooftop PV, 10% from grid-connected solar PV, 8% from wind, and 3% from nuclear sources.
The Minister acknowledged two key challenges — a limited skills pipeline and a weakened construction industry. However, he emphasized that the government remains committed to transforming South Africa’s energy landscape and creating new economic opportunities.
“This is not just an electricity programme, but a response to an economic question,” Ramokgopa said.
He underscored the plan’s broader ambitions of economic revival, job creation, and industrialisation.
“We’re talking about growth, industrialisation, new skills, and resuscitating collapsed industries,” he said.
Ramokgopa also stressed the importance of energy security, reducing load shedding, and ensuring affordable electricity for all.
“We want to ensure that each household has access to electricity that is affordable and reliable, and that we can guarantee it into the future. That’s the point we are making.”
He further noted the link between electricity access and human development:
“For as long as there is no electricity, for as long as the lights are off, we will undermine the country’s potential to achieve its ambitions of growth, attract investment, and enable our people to reach their full potential.
“This is not just about megawatts; we are constructing a story about how we are going to get the South African economy back on its feet.”
The strategy also commits to significant emissions reductions, targeting 160 million tonnes of carbon dioxide (CO₂) equivalent by 2030, declining to 142 million tonnes by 2035.
The Minister revealed that Eskom has already shown encouraging improvements, with the energy availability factor rising from 48% during peak load shedding to around 70% currently — providing a strong foundation for the country’s ambitious energy transformation.
Source:https://energynewsafrica.com
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