South Africa Approves Renewable Energy Masterplan to Boost Clean Power, Storage, and Green Hydrogen

The South African Cabinet has officially approved the implementation of the South African Renewable Energy Masterplan (SAREM), setting the stage for a major transformation in the country’s energy sector. Aimed at boosting energy security and industrial development, the plan outlines a comprehensive strategy to expand renewable energy capacity and battery storage solutions in the coming years.

SAREM provides a detailed roadmap for addressing critical challenges in local energy infrastructure, investment, and capacity, at a time when South Africa’s electricity demand is expected to double by 2040. The plan focuses on four key pillars:

Unlocking system readiness to support local demand for renewable power and storage,

Building industrial value chains in clean energy technologies,

Fostering inclusive growth and industry transformation, and

Developing skills and innovation for long-term sustainability.

The approval comes as South Africa ramps up its clean energy ambitions under the Integrated Resource Plan (IRP), revised in 2023, which targets 29.5 GW of new capacity by 2030 — including 14.4 GW from wind and 6 GW from solar. The latest IRP procurement round also includes 6.8 GW of renewables, 3 GW of natural gas, and 1.5 GW of coal.

SAREM will play a pivotal role in leveraging South Africa’s growing interest in solar, wind, lithium-ion, and vanadium battery technologies, driving investment in generation and transmission infrastructure. The masterplan also emphasizes public-private partnerships, skills development, and the integration of green hydrogen to meet international decarbonization targets — including the 5% blended fuel requirement in the aviation and maritime sectors by 2030.

The plan’s approval is expected to strengthen South Africa’s standing as a clean energy leader in Africa. Over 500 GW of renewable capacity is currently in the concept phase across Africa, with South Africa and North Africa accounting for nearly 80%.

Further analysis of SAREM’s implications will take center stage during the African Energy Week (AEW): Invest in African Energies 2025, scheduled for September 29 to October 3. AEW will bring together African governments, energy leaders, and global investors to explore opportunities tied to SAREM and broader efforts to eradicate energy poverty.

Key agenda items at AEW 2025 include discussions on bridging the electricity gap, strengthening public-private collaboration, and advancing renewable and gas-powered projects. The event will also feature a Country Spotlight on South Africa, examining the nation’s evolving energy landscape, investment outlook, and the role of a diversified energy mix in shaping its future.