Ramaphosa says South Africa's energy transition is creating new economic opportunities

Africa

PRETORIA, South Africa (NPA) — South African President Cyril Ramaphosa says the country’s transition to cleaner energy is gaining momentum, creating new investment opportunities while laying the foundation for long-term energy security, economic growth and job creation.

In his weekly “From the Desk of the President” newsletter released on Monday and made available to New Post Africa, Ramaphosa said South Africa’s evolving energy landscape demonstrates that the country is successfully balancing its traditional energy strengths with investments in renewable power.

He cited the newly commissioned Ummbila Emoyeni Wind Farm in Mpumalanga as a symbol of South Africa’s changing energy future.

Located between Bethal, Davel and Morgenzon, the first phase of the project, developed by Seriti Green, a subsidiary of Seriti Resources, recently commenced commercial operations.

According to the President, the project demonstrates that South Africa’s clean energy transition is increasingly being driven by local companies investing in the country’s future.

“This is a demonstration that South Africa’s clean energy investments are not only being driven from abroad, but also by domestic firms with the foresight to invest in their country’s future,” Ramaphosa said.

The first phase of the project comprises 25 wind turbines capable of generating 155 megawatts (MW) of electricity, which will be transmitted through Eskom’s network to power Seriti’s mining operations.

Once completed, the 900MW hybrid energy facility will combine wind, solar and battery storage technologies, making it the largest hybrid energy project in South Africa.

Ramaphosa said the development aligns with the country’s 2025 Integrated Resource Plan, which seeks to diversify electricity generation by increasing the contribution of renewable energy while gradually reducing reliance on coal.

He acknowledged the historic role of Mpumalanga’s coalfields in powering South Africa’s industrial development, noting that the province is now becoming a centre for the country’s renewable energy future.

While coal continues to dominate the national energy mix, the President said renewable energy generation has grown steadily in recent years.

According to Statistics South Africa, renewable energy accounted for just 2 per cent of locally generated electricity in 2016, rising to 6 per cent in 2021 and 9 per cent by 2024.

South Africa now has nearly 16 gigawatts (GW) of installed renewable energy capacity, while an additional 32GW of projects are expected to be connected to the national grid by 2030.

Ramaphosa also highlighted the rapid expansion of rooftop solar installations by households and businesses.

He said Statistics South Africa recorded an 86 per cent increase in households with solar panels over the past three years, reaching approximately 675,000 households in 2025.

The President attributed the growth in renewable energy investment to policy and regulatory reforms introduced in recent years.

These include the removal of licensing thresholds for self-generation projects and the revival of the Renewable Energy Independent Power Producer Procurement Programme, which he said unlocked significant private sector investment.

Ramaphosa noted that more than R50 billion in green energy investment commitments were announced during this year’s South Africa Investment Conference.

He also pointed to the launch of the country’s first Energy Infrastructure Investment Prospectus, which outlines investment-ready projects across the electricity value chain.

The President stressed that secure, reliable and affordable electricity remains essential for economic growth, industrial development and improved living standards.

He said the government’s just energy transition strategy is aimed not only at reducing carbon emissions but also at ensuring affected communities, workers and businesses benefit from the transition.

According to him, government is working towards establishing a competitive electricity market that will lower costs and improve efficiency through greater competition.

Ramaphosa disclosed that Cabinet has approved the publication of the revised Electricity Pricing Policy and the draft Electricity Sector Market Transformation Position Paper for public consultation.

He also revealed that government continues to make progress towards establishing an independent state-owned transmission company responsible for operating South Africa’s electricity market.

“The clean energy revolution underway bears witness to a country that, even when confronted with an energy crisis, adapted, reformed and laid the groundwork for a new future,” Ramaphosa said.

He added that government would continue working with business, labour and civil society to ensure the country’s energy transition remains inclusive, expands economic opportunities and delivers affordable electricity for all South Africans.