South Africa has taken a critical step towards reshaping its energy future by approving its first Renewable Energy Masterplan, a long-anticipated strategy to build a robust, local renewable energy industry. For a country where about 85% of electricity is still generated from coal, this masterplan signals more than a technical shift—it’s an economic, environmental, and social turning point.
The masterplan is not just about generating clean power; it’s about creating a domestic industry that supports local manufacturing of renewable technologies, particularly solar photovoltaic panels, wind turbines, and batteries. This comes at a time when South Africa is not only battling a severe power crisis, but also seeking ways to move away from its heavy reliance on coal, one of the dirtiest energy sources. The plan aligns with the national goal to add between 3 to 5 gigawatts of renewable energy capacity annually through to 2030, a scale considered sufficient to drive demand for local manufacturing and give confidence to investors.
One of the most significant features of the plan is its aim to draw R15 billion in investment and create 25,000 direct jobs by 2030. These jobs span across factory operations, engineering, logistics, and construction. This represents not just a green industrial push, but a social one as well, aiming to empower youth and semi-skilled workers, especially those from communities previously reliant on coal. South Africa’s Just Transition Framework is woven into the plan, ensuring that no one is left behind. Black-owned businesses, small enterprises, and community-driven initiatives are earmarked for support, creating a more inclusive economic foundation.
Interestingly, the masterplan is not intended to solve the country’s rolling blackouts or power shortages. Those are addressed in other energy strategies such as the Integrated Resource Plan and the Energy Action Plan, which focus on electricity generation and grid expansion. Rather, the masterplan focuses on building the infrastructure to manufacture and supply renewable components locally, reducing dependency on imports and ensuring a steady supply of systems for domestic use and export.
This localization effort is also an economic opportunity that cannot be overlooked. In 2023 alone, South Africa imported solar and battery technologies worth over R17.5 billion. Yet the country is rich in critical minerals like manganese, vanadium, and platinum—materials essential for manufacturing clean energy technologies. It already has some of the industrial capacity, with local companies producing solar panels, turbine towers, and electrical components. The potential to upscale these capabilities and become a key player in global renewable energy markets is well within reach.
To bring this vision to life, factories will be developed through a combination of private sector investment and public sector support. Special economic zones, tax incentives, and localization requirements are among the tools the government plans to use to stimulate this growth. There’s even an eye on expanding into more advanced technologies such as offshore wind and long-duration batteries.
The masterplan also highlights the importance of growing local expertise. Partnerships between energy companies, training institutions, and government bodies are expected to integrate renewable energy education into national curricula and workplace training programs. This will require significant collaboration and support from the higher education ministry and the private sector to ensure the workforce is ready to meet industry demands.
Still, implementing the masterplan will not be without its challenges. South Africa has a history of ambitious industrial plans that failed to materialize due to poor coordination and governance gaps. These include past attempts in the automotive and energy sectors that faltered because of delays and siloed government actions. Without strong leadership and cohesive implementation, the masterplan could suffer a similar fate.
Another immediate bottleneck is the electricity grid. The current grid cannot accommodate the scale of new renewable energy projects envisioned. Eskom estimates it will require around US$21 billion to expand the grid adequately. Without a clear timeline and sufficient financing for this infrastructure, renewable energy manufacturers might hesitate to invest, fearing an unreliable or insufficient market for their products.
There’s also the issue of skills shortages. Technicians, electricians, engineers, and installers specialized in renewable systems are currently in short supply. If this human resource gap isn’t addressed quickly, the country may struggle to meet its ambitious targets.
To ensure success, the government needs to act swiftly and decisively. Updated procurement rules must be published, with enforceable targets for localization. Investors need clear market signals that reassure them of a consistent demand for locally manufactured components. The national electricity strategy must also be aligned with the renewable energy masterplan, phasing down coal in favor of clean energy technologies. Eskom, in turn, requires both financial and logistical support to upgrade the grid at the necessary pace.
Read also: The push for a just transition to renewable energy in Africa
Incentives that attract and retain investment—particularly from local entrepreneurs and international partners—must be simplified. Cumbersome procedures around environmental approvals, land rezoning, and licensing processes continue to stifle progress. Cutting the red tape while maintaining high standards will improve investor confidence and allow projects to get off the ground faster.
South Africa is standing at a crossroads. With the Renewable Energy Masterplan, the country has a credible blueprint to decarbonize its economy, stimulate industrial development, and empower communities. The opportunity is enormous, but so is the responsibility to execute it effectively. What happens next will determine whether this plan becomes a milestone of sustainable progress—or another missed opportunity in South Africa’s energy story
