Inside South Africa’s masterplan for a renewable energy industry

It is an industrial strategy that sets out how South Africa can set up a new manufacturing industry in renewable energy and battery storage value chains.

- RICARDO AMANSURE

The masterplan was developed by the government, some sections of organised labour, a non-profit organisation advocating for renewable energy, and representatives of the renewable energy industries. It sets out a framework to produce renewable technologies locally. These include solar photovoltaic panels, wind turbines and batteries.

The masterplan has been drawn up so that it aligns with South Africa’s existing national target of adding 3-5 gigawatts of renewable energy capacity each year to 2030.

This is a scale that can support the development of local manufacturing hubs. (One gigawatt can supply electricity to about 700 000 average homes.)

This steady supply will be enough to give businesses and investors the confidence to commit to long-term investments in local manufacturing hubs.

These are zones where renewable systems and components are produced or assembled for domestic and export markets.

The state-owned electricity company, Eskom, has not directly guaranteed that it will buy 3-5 gigawatts of renewable energy each year. But the government’ national electricity plan (the Integrated Resource Plan) provides a strong indication of future demand.

The masterplan also aims to attract at least R15 billion in investment by 2030 and train “green workers” for employment in 25 000 direct jobs.

These roles range from factory work and logistics to engineering and construction. Many will be for youth and semi-skilled workers.

South Africa already has a Just Transition Framework to ensure that the shift to a low-carbon economy is fair, and does not leave workers, communities or regions behind.

The masterplan is aligned with this. It aims to support Black-owned companies and small-scale and community-based initiatives, especially in places affected by the looming loss of jobs in the coal industry.