A clean and diverse energy mix for South Africa

Project description

Title: The South African-German Energy Programme (SAGEN
Commisioned by: Federal Ministry for Economic Cooperation and Development (BMZ)
Country: South Africa
Lead executing agency: Department of Mineral Resources and Energy (DMRE), South African Local Government Association (SALGA), Eskom, South African National Energy Development Institute (SANEDI)
Partner: Department of Mineral Resources and Energy (DMRE) ​​​​​​​
Overall term: 2022 to 2024

Solar Power © Glenn McCreath


Due to insufficient capacities for electricity generation, an unreliable and carbon intense coal-power plant fleet, increasing energy prices and with an eye on the potential of low-cost and clean energy generation in mind, South Africa has initiated a fundamental transformation of its power sector. The country urgently needs to shift to a cleaner and more diverse electricity mix. During the current power sector reform the electricity utility Eskom will be unbundled into generation, transmission and distribution units. The generation of electricity will increasingly be decentralised and more competitive electricity markets will be established. The planned rapid expansion of renewable energy generation will require technical support on grid access and grid stability. Municipalities specifically need to be accompanied to integrate the embedded generation of electricity into their distribution grids and their energy management. SAGEN’s main intention is to support government and private partners that respond to these highlighted challenges and to contribute to a just and sustainable energy transition in South Africa.


More of the electricity in South Africa comes from renewable sources. Energy efficiency in South African municipalities has improved.


SAGEN aims to support the South African energy transition on the following levels.

  • Responsible stakeholders receive support to accompany the shaping and implemention of the power sector reform.
  • Eskom and other stakeholders receive support in ensuring the performance of the power system.
  • Municipalities receive support in improving the conditions for the integration of embedded generation in distribution networks.
  • The programme assists municipalities to implement municipal energy management systems, develop Municipal Energy Efficiency Action Plans (MEEAP) and in taking pilot measures to improve energy efficiency.

Last update: June 2022

Additional information