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IOL News
a day ago
- Business
- IOL News
Ramokgopa urges global shift from pledges to execution for Just Energy Transition
The G20 Energy Transitions and clean cooking were topics of discussion for media outlets with Dr. Kgosientsho Ramokgopa, Minister of the Department of Electricity and Energy. Image: GCIS Minister for Electricity and Energy, Kgosientso Ramokgopa, has emphasised the urgent need for a fundamental reconfiguration of the global energy finance architecture. Speaking at the third Energy Transitions Working Group meeting under South Africa's G20 Presidency, he called for a transition from pledges to tangible execution, particularly in light of recent commitments exceeding R1 billion towards the implementation of JET programmes. Ramokgopa asserted that the credibility of the global transition hinges on the timely and effective mobilization of financial resources to where they are most needed. "Finance must become a tool of inclusion, not a barrier to participation. Scaling up climate and energy finance is not only urgent, but also central to closing the infrastructure gap, addressing energy poverty, and driving structural transformation and industrialisation," Ramokgopa said. "We must shift from pledges to execution, from fragmented flows to coordinated and catalytic investment." Ramokgopa underscored the dire necessity to address systemic underinvestment in transmission, distribution, and generation capacity. He advocated for a financing structure that ensures long-term affordability, particularly for vulnerable and energy-poor communities. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Central to this strategy is the establishment of de-risking mechanisms aimed at attracting private capital while preserving essential public oversight. Ramokgopa also highlighted the importance of expanding access to concessional and blended finance for early-stage and localised energy projects, prioritising small and medium enterprises in the energy value chain. So far, South Africa has secured pledges totalling up to $12.8 billion from international partners, with over $760 million earmarked for grant funding. Recently, the country entered into a $474m loan agreement with the African Development Bank (AfDB) along with a €500 million arrangement with the German Cooperation via KFW Development Bank, both crucial for funding the JET initiatives. However, Ramokgopa cautioned that renewable energy sources alone - particularly in regions with variable resources, legacy baseload infrastructure, or limited grid flexibility - were insufficient to satisfy all system requirements. He said for a pragmatic approach, South Africa had to utilise a mix of technologies, which includes Carbon Capture, Utilisation and Storage (CCUS) to reduce emissions from hard-to-abate sectors and existing fossil assets, Small Modular Reactors (SMRs) as a dispatchable, low-emission baseload option suitable for diverse geographies and carbon removal, and long-duration storage technologies to offset residual emissions and enhance system resilience. Ramokgopa said demand-side and system flexibility tools, including digital technologies, to balance load and optimise system operations also had to be considered. "A technology-inclusive approach ensures that countries can select solutions aligned with their energy mix, infrastructure readiness, and industrial strategy," he said. "It also expands investment options, supports innovation, and avoids prematurely locking out viable low-carbon technologies. The transition must be both ambitious and anchored in the realities of implementation." Ramokgopa's clarion call extends beyond South Africa's borders, urging the G20 to fully and practically implement Sustainable Development Goal 7, which aims to ensure access to affordable, reliable, sustainable, and modern energy for all. This, he said, requires mobilising adequate and appropriate climate and development finance, modernising grid infrastructure at scale, supporting public-private partnerships to accelerate implementation and enabling context-specific, country-led energy transition pathways that consider national priorities and the global imperative to address climate change. "Each country must retain the right to determine its pathway, based on national priorities, institutional capacity, and existing energy systems. There is no single model. No uniform pace. No imposed prescription," Ramokgopa said. BUSINESS REPORT
IOL News
24-07-2025
- Business
- IOL News
More than 7 000 buildings registered for energy performing certificates
Deputy Minister of Electricity and Energy, Samantha Graham-Maré, announced that as of 21 July 2025, more than 7,000 public and private buildings have registered for an Energy Performance Certificate (EPC). This is in anticipation of the deadline of December 7. The EPC is part of the Department of Electricity and Energy's (DEE) and South African Energy Development Institute's (Sanedi) priority to drive energy efficiency in South Africa. Acknowledging the environmental challenges posed by differing climate policies globally, the Commission is keen to ensure that substantial carbon emissions do not simply shift from the European Union (EU) to nations with less stringent regulations. Since its launch in December 2020 until July 21, 7,113 buildings have registered, and 3,884 EPCs have been issued. Of these, Gauteng leads with 1,689, followed by the Western Cape with 1,565. The Northern Cape has the fewest, with only 11 EPCs issued. Buildings registered and issued EPCs in other provinces are: - Kwa-Zulu Natal 305 - Eastern Cape 111 - Mpumalanga 64 - Free State 55 - Limpopo 47 - North West 37 Under the Regulation, Mandatory Display and Submission of Energy Performance Certificates, in the National Energy Act, 1998 (Act no. 34 of 2008), all state-owned buildings that are 1000m2 and owners of commercial buildings of 2000m2 that fall under the occupancy classifications: A1 – Entertainment and public assembly; A2 – Theatrical and indoor sport; A3 – Places of instruction and G1 – Offices, are required to register their buildings and publicly display EPCs by 07 December 2025. The purpose of EPCs include: Indicates the energy performance of a building, Serve as regulatory tools/instruments targeting inefficient buildings, encouraging transformation towards energy-efficient buildings, Are indicators for building owners to note and change their consumption patterns to benefit financially and comply with regulations, and In the long term, they promote the reduction of Greenhouse gas emissions through the implementation of energy efficiency interventions using reliable data from existing EPCs. Deputy Minister Graham-Maré said: 'With only five months left before registrations close, large building owners need to prioritise this. We aim to reach 60,000 registrations by the closing date. I am working with the Minister of Public Works and Infrastructure, Dean Mcpherson, and will also be working with Premiers and Mayors to ensure that this issue gets immediate attention. There is an opportunity for all South Africans to play a vital role in reducing carbon emissions and benefit from the programme. 'I urge all building owners, both public and private, to adopt and implement alternative and energy-saving methods. We need to be creative and innovative so that we save on energy. Some practical ways to do this include installing LED bulbs and smart geysers, fitting solar panels, and turning off appliances when they are not in use. I encourage anyone to engage my department about the programme and how they can implement this initiative,' concluded Deputy Minister Graham-Maré.
IOL News
24-07-2025
- Business
- IOL News
Scatec clinches preferred bidder status for R13bn solar cluster in Free State
The project, known as the Kroonstad PV cluster, is expected to operate under 20-year Power Purchase Agreements (PPAs), ensuring a steady supply of sustainable energy once completed. Image: Supplied Norway-based renewable energy group, Scatec ASA, has been awarded preferred bidder status for a R13 billion solar cluster project in in the Free State province, which will add a total of 846MW to the electricity grid. In a statement on Wednesday, Scatec confirmed it had been awarded preferred bidder status in the seventh round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The project, known as the Kroonstad PV cluster, is expected to operate under 20-year Power Purchase Agreements (PPAs), ensuring a steady supply of sustainable energy once completed. This latest development follows the Department of Electricity and Energy's strategic re-allocation of energy capacity from onshore wind to solar photovoltaic (PV) solutions. The cluster will comprise three solar power plants, Oslaagte Solar 2 (293MW), Oslaagte Solar 3 (293MW), and Leeuwspruit Solar (260MW). The estimated total project cost for the solar cluster project is R13bn ($735 million). The projects will be financed with up to 90% non-recourse project debt and the remaining by equity from the owners. Scatec CEO, Terje Pilskog, said South Africa was one of the group's core markets with the latest award the largest megawatt award to date in the country. 'It excites me to announce another important milestone for Scatec in South Africa and for the country's renewable energy transition. The Kroonstad PV Cluster represents a significant addition to Scatec's growing renewable energy footprint in Sub-Saharan Africa," Pilskog said. "Being selected once again under the REIPPPP reaffirms our role as a trusted partner and a leading developer in the region. We commend the government's continued commitment to enabling clean, secure, and affordable energy." Scatec will own 50.90% of the equity in the project with Stanlib's infrastructure fund (through its renewable energy platform, Greenstreet), along with Redstreet owning 46.50% and a Community Trust holding 2.6%. Scatec will provide engineering, procurement, and construction (EPC), operations and maintenance, and asset management services to the project. Financial close is expected in 2026. "We are now looking forward to reaching financial close and start construction of the PV cluster during 2026,' said Alberto Gambacorta, Scatec's executive vice-president and general manager for Sub-Saharan Africa. The group in December announced it had officially started producing and supplying electricity to the national grid from the three Kenhardt plants in the Northern Cape. The Kenhardt project, one of the world's first and largest hybrid solar and battery storage facilities, has an installed solar capacity of 540MW and a battery storage capacity of 225MW/1 140MWh. Scatec said the project delivers 150MW of dispatchable power from 5am to 9.30pm year-round to the national grid under a 20-year Power Purchase Agreement with Eskom. The group is also in an advanced stage of the three Grootfontein solar projects won as part of the Department of Mineral Resources' fifth bidding round of its REIPPPP in 2021. The solar power plants will be the first Scatec assets located in the Western Cape province of the country and have a total capacity of 273MW solar power. Once operational the projects will deliver much needed renewable energy under a 20-year Power Purchase Agreement. The three solar plants will lead to a combined abatement of 630 000 tons of CO2 emissions annually. BUSINESS REPORT
Zawya
17-07-2025
- Business
- Zawya
South Africa: Select Committee on Mineral Resources Calls for Local Renewable Products
The Select Committee on Agriculture, Land Reform and Mineral Resources has urged the Department of Electricity and Energy to localise the production of renewable products instead of relying on overseas countries. The committee received a briefing yesterday from the Department of Electricity and Energy about the implementation of the Renewable Energy Sector Master Plan (RESMP). The department's presentation outlined the objectives of the Master Plan which highlighted its role as an industrialisation tool that seeks to harness the growing demand for renewable energy resources, particularly solar and wind. The department stressed the importance of developing inclusive economic growth by ensuring that previously disadvantaged communities, especially youth and women, are actively engaged in the energy sector. Initiatives that are in the Master Plan and that were presented and discussed with committee members comprised the localisation of production, the establishment of skills development programs, and the implementation of robust monitoring frameworks to its track progress. The committee said the Master Plan should not only provide a sustainable energy solution but also contribute to employment, job creation including skills development . Questions to the department were mostly about the integration of youth and vulnerable communities into the renewable energy sector. The committee queried about measures being taken to ensure that previously disadvantaged communities especially in rural areas benefit from the Master Plan. The department acknowledged its responsibility to achieving at least 50% of job opportunities for youth and marginalised communities, alongside initiatives to map skills requirements and enhance internship programs. On the issue of localisation of renewable energy production. The committee sought clarity on how the RESMP plans to localise production and reduce reliance on foreign countries. Members said South Africa should be a manufacturer on renewable products such solar panels instead of training people to assemble. Committee members said the country needs to start speaking about the production of solar panels and charge controllers. The department re-assured members of the committee that plans are in place to look into localised manufacturing opportunities. Regulatory obstacles were addressed and identified to be an apprehension, the committee expressed worry concerning the moratorium on letters of no objection from the Department of Defence to Independent Power Producers. As part of the process to register as an IPP , they need a letter of no objection from the Department of Defence. The committee said this may hamper the progress of IPP. The department said it would engage with the relevant authorities to resolve these challenges so that they are not a deterrent. Distributed by APO Group on behalf of Republic of South Africa: The Parliament.
Daily Maverick
17-06-2025
- Business
- Daily Maverick
The R440bn private transmission gamble that could finally end load shedding
Government fast-tracks private sector participation in grid infrastructure while the national transmission company prepares for a competitive electricity market by April 2026. South Africa's electricity salvation is called the Independent Transmission Projects (ITP) Programme – a joint venture between Kgosientsho Ramokgopa's Department of Electricity and Energy and Enoch Godongwana's National Treasury – and it's racing the clock to unlock billions in private investment and build the 14,000km of new transmission lines needed to connect renewable energy projects and end the country's electricity crisis. Speaking to the parliamentary committee on electricity and energy last week, Minister of Electricity and Energy Ramokgopa painted a picture of a country on the cusp of an energy revolution, but one that required unprecedented national rewiring coordination between government, the private sector and state-owned entities to succeed. Ramokgopa knows the stakes. It was his Integrated Resource Plan that estimated a desperate need of more than 14,000km of new transmission lines and 170 transformers over the next decade – requiring a minimum of the N1 road length from Joburg to Cape Town's worth of new lines annually – South Africa's current grid expansion pace is 'wholly inadequate', according to government briefings. Private sector rush The appetite for private sector involvement is clear. Between December 2024 and February 2025, the government conducted a request for information that received more than 130 formal responses from local and international developers, financiers, operators and equipment manufacturers. More than 44% of local participants indicated they intended to partner with international entities, suggesting the scale of investment required exceeds domestic capacity alone. The feedback was instructive: the industry reported a need for stable regulatory frameworks and a programmatic roll-out for pipeline predictability, while also flagging permitting, right-of-way acquisition and supply chain constraints as key risks requiring proactive mitigation. The government listened. First came the ministerial determination, gazetted on 28 March 2025, designating the Department of Electricity and Energy as the procurer and the National Transmission Company South Africa (NTCSA) as the buyer under Transmission Services Agreements. The determination defines Phase 1 scope as 1,164km of 400kV transmission lines across the Northern Cape, North-West and Gauteng. Expropriation trump card Next came the Draft Electricity Transmission Regulations, on 3 April, with public consultation closing on 22 May. The IPP Office will run the Phase 1 procurement, with pre-qualification tenders expected by end-July and requests for proposals by November. A persistent obstacle that the NTCSA inherited from Eskom is the complexities of securing land for its transmission lines. Ramokgopa confirmed that expropriation with compensation would be used 'as a final instrument' after exhausting other engagement options. For ITP projects, the government aims for 'late-stage tender' – resolving land acquisition, environmental impact assessments and statutory authorisations before developers take over execution, de-risking projects for private investors. Some discussions have stretched over four years without resolution, but the NTCSA says it is committed to meticulously adhering to proper procedures to mitigate the risk of litigation as it navigates these challenging negotiations. The R440bn funding puzzle The Transmission Development Plan requires R440-billion over the next decade. Ramokgopa was blunt about the funding reality: 'The sovereign balance sheet cannot provide a blanket sovereign guarantee for this investment, nor are Eskom's or NTCSA's balance sheets strong enough alone.' The government's solution is a 'bespoke financing instrument' backed by a Credit Guarantee Vehicle (CGV) developed with the World Bank. The CGV will be incorporated as a private non-life insurance company in South Africa and is expected to become operational in 2026. For the first five years, R155-billion will be spent on transmission infrastructure, with R30-billion expected from third-party debt by 2028. NTCSA's board has increased its five-year budget by about R40-billion to R130-billion, with 76% allocated for network expansion. A R219-billion provision from Budget 3.0 (part of the R1.03-trillion medium-term expenditure framework) was noted for strengthening the electricity supply network, from generation to transmission and distribution. Supply chain nationalism Ramokgopa pointed to the government's intention to build local industries on the back of energy investments rather than 'exporting opportunities'. The Department of Trade, Industry and Competition is coordinating interventions to ensure local production of Class 4 transformers and steel. The progress is evident: 22 factories have been accredited for various transformer classes, while five of six identified steel tower suppliers have been certified. Eskom announced a panel of transformer suppliers in June 2024 to address demand for 101 large transformers over the next decade. Racing against time With the competitive electricity market targeted for April 2026 and the Credit Guarantee Vehicle becoming operational the same year, timelines are tight. The NTCSA is simultaneously developing market codes, managing infrastructure roll-outs and preparing for its role as market operator once the Electricity Regulation Amendment Act is passed. The South African Wholesale Electricity Market School will launch at Wits Business School to build market participant capabilities, while synchronous condensers are planned to strengthen grid stability as renewable penetration increases. That said, for the first time in years, South Africa has a comprehensive plan, committed funding mechanisms and private sector interest to transform its electricity system. Whether it can execute fast enough to meet the 2026 competitive market deadline – and finally end load shedding – remains the R440-billion question. DM
