By Abdulllahi Lukman
The South African Cabinet has approved the South African Renewable Energy Masterplan (SAREM), aimed at enhancing energy security and promoting industrial growth.
This comprehensive plan addresses challenges related to local capacity, infrastructure, and investment, providing a roadmap for the development of renewable energy and battery storage technologies.
With electricity demand in South Africa projected to double by 2040, SAREM offers investors a clear pathway for advancing power projects.
The upcoming African Energy Week (AEW) 2025, scheduled for September 29 to October 3, 2025, will explore the anticipated impact of SAREM on the country’s energy mix.
The event aims to unite African government officials, policymakers, energy operators, and investors to drive investment in African energy, aligning with broader goals of eradicating energy poverty.
South Africa is targeting ambitious growth within its renewable energy sector, seeking to enhance grid resilience through significant investments in generation and transmission infrastructure.
Guided by policies such as the Integrated Resource Plan (IRP), revised in 2023, the country plans to add 29.5 GW of new capacity by 2030, including 14.4 GW from wind and 6 GW from solar sources.
The latest procurement round of the IRP aims for 6.8 GW of renewable energy, alongside 3 GW from natural gas and 1.5 GW from coal.
To achieve these objectives, SAREM focuses on leveraging the growing demand for renewable energy and storage technologies, particularly in solar, wind, and lithium-ion and vanadium-based battery solutions.
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The masterplan is built around four key areas: supporting local demand for renewable energy, fostering industrial development, promoting inclusive growth, and enhancing local capabilities in skills and technological innovation.
SAREM is poised to energize South Africa’s already expanding renewable energy market. According to the African Energy Chamber’s State of African Energy 2025 Outlook, South Africa, along with Egypt, is expected to lead Africa in power generation in 2025.
The continent currently has over 500 GW of renewable energy projects in the conceptual phase, with 80 percent located in North Africa and South Africa. Additionally, the country is at the forefront of nuclear power generation.
The masterplan will facilitate partnerships across the value chain, implement targeted training programs, and address regulatory challenges.
While SAREM presents significant advantages for the renewable energy sector, the Cabinet has instructed further work to enhance the plan’s appeal to investors, including the development of green hydrogen to meet international commitments for 5 percent blended fuel in aviation and maritime sectors by 2030.
During AEW 2025, a multi-track program will delve into how policies like SAREM will influence Africa’s energy landscape.
A dedicated Energy Transition stage will focus on Africa’s strategic approach to a just transition, covering critical topics such as Energy Security, Local Value Creation, and Scaling-up Renewable Energy.
A Powering Africa stage will tackle fundamental challenges and opportunities in the continent’s electricity market.
For South Africa, discussions will center on bridging the electricity gap, energy efficiency, and enhancing collaboration between public and private sectors.
A country spotlight will also examine South Africa’s energy landscape, including developments in oil and gas and utility-scale renewable energy projects.
The spotlight will also explore the integration of green hydrogen, battery storage solutions, and a mix of solar, wind, and natural gas in shaping the country’s energy future. END
