Driving South Africa’s Energy transition to reliable, affordable, and clean energy

Context

South Africa is reforming its power industry to tackle insufficient electricity generation, an unreliable and carbon-intensive coal-power fleet, and rising energy prices. This transformation aims to diversify the electricity mix and reduce coal dependency. As part of the reform, the country is restructuring its electricity utility Eskom into separate entities for generation, transmission, and distribution, promoting decentralised electricity generation and competitive markets.

Furthermore, significant investments in renewable energy are underway, necessitating technical assistance for grid access and stability. Therefore, municipalities need support to integrate embedded generation into their distribution grids and manage energy resources efficiently.

Objective

South Africa has advanced its energy transition towards a diversified, low-carbon, and inclusive energy system.

Approach

The project supports the South African energy transition through four key pillars:

• Providing advisory services to liberalise the electricity industry and update policies and regulations, fostering a dynamic and competitive energy market.
• Assisting Eskom and municipal distributors with advanced planning and operational strategies to enhance system resilience and optimise power delivery.
• Collaborating with municipalities to integrate embedded generation solutions into distribution networks, thereby enhancing grid stability and resilience.
• Supporting local municipalities in implementing effective energy management systems and driving improvements in energy efficiency, thus contributing to a more resilient and reliable energy future.

The project is funded by the German Ministry for Economic Cooperation and Development (BMZ) and co-funded by the Swiss State Secretariat for Economic Affairs (SECO).

Last update: Juni 2024