With SA’s abundant solar and wind resources, government expects to be able to reduce the cost of electricity. (Image source: 123RF, created via GenAI)
South Africa is setting its sights on generating at least 40% of its electricity from renewable sources as part of a renewed push to secure long-term energy stability, president Cyril Ramaphosa announced during his State of the Nation Address (SONA) last night.
Ramaphosa said the target forms a central pillar of government’s strategy to safeguard energy security after the country’s hard-won emergence from years of load-shedding.
He said through Operation Vulindlela, government is working to transform the structure of the economy, to fix infrastructure and make electricity, water and logistics sectors more competitive and efficient.
“Having put load-shedding behind us, we must now transform our energy system to ensure long-term energy security. For decades, our economy grew on the back of cheap electricity.
“But then state capture, mismanagement, inadequate maintenance and inflated megaprojects drove up the cost of electricity to businesses and our citizens.”
Ramaphosa said that with the extensive reforms underway in the energy sector, combined with South Africa’s abundant solar and wind resources, government expects to be able to reduce the cost of electricity.
He added that regulatory changes have enabled a massive and growing pipeline of investment in renewable energy.
“By 2030, more than 40% of our energy supply will come from cheap, clean, renewable energy sources. We are establishing a level playing field for competition, so that we are never again exposed to the risk of relying on a single supplier to meet our energy needs.”
He pointed out that government is restructuring power utility Eskom and establishing a fully independent state-owned transmission entity.
This entity will have ownership and control of transmission assets and be responsible for operating the electricity market, he explained.
“Given the importance of this restructuring for the broader reform of the electricity sector, I have established a dedicated task team under the National Energy Crisis Committee to address various issues relating to the restructuring process, including clear timeframes for its phased implementation. It will report to me within three months.
“In addition, we will this year commence the first round of independent transmission projects to enable private investment in expanding our national grid. We will work in each province to address transformer overloading, illegal connections and equipment failure with the objective of eradicating load reduction by next year. We are committed to the path that we have embarked on to modernise our energy system.”
The South African Wind Energy Association (SAWEA) says it remains optimistic with the continued national focus on energy reform, infrastructure investment and green economic growth outlined in the 2026 SONA.
The industry body notes that government’s recognition that South Africa has entered a new phase of energy system reform is encouraging for the renewable energy sector.
“The acknowledgement of the country’s abundant renewable energy resources, together with the commitment to modernise the electricity system and expand the transmission network, provides important policy certainty for investors and industry stakeholders,” says SAWEA in a statement.
“The confirmation that regulatory changes have enabled a growing pipeline of investment in renewable energy signals steady progress in building a more competitive and resilient electricity market.”
SAWEA notes that it supports government’s projection that by 2030, more than 40% of South Africa’s energy supply will come from cheap, clean, renewable energy sources – a transition in which wind energy will play a central role, given its cost competitiveness, speed of deployment and strong regional development benefits.
It says this will only be possible through an aligned and coordinated approach. “Establishing a level playing field for competition in the electricity sector is an important step towards diversifying supply and reducing reliance on a single generation source. This is essential for long-term energy security, system resilience and economic growth.”
The industry body adds that the announcement of a dedicated task team under the National Energy Crisis Committee to oversee the restructuring of the electricity sector, including clear timeframes for phased implementation, is a positive step towards ensuring reforms translate into practical outcomes.
“Wind energy remains a key component of South Africa’s future energy mix, supporting energy security, industrial development and job creation. In this context, SAWEA will continue to champion green industrial development and the Just Energy Transition, including support for manufacturing, infrastructure development and skills creation linked to the green economy.
“These initiatives present significant opportunities for localisation, regional development and inclusive economic growth.”
