Energy investments will help overcome the debilitating load-shedding that the country is currently experiencing, as new electricity generation capacity comes online, says President Cyril Ramaphosa.
In his weekly newsletter to the country, the president said that energy continued to be an area of growth in South Africa as the 25 preferred bidders in the fifth round of the Renewable Energy Independent Power Producer Procurement Programme were together expected to invest around R50 billion into the economy.
He said that the increase of the licensing threshold for embedded generation to 100 megawatts was likely to result in substantial private investment in electricity generation projects.
South Africa has recently secured an initial commitment of around R131 billion to fund a just transition to a low-carbon economy by investing in renewable energy, green hydrogen and electric vehicles.
“This commitment by the United States, United Kingdom, France, Germany and the European Union is in line with the Paris Agreement, which obliges wealthier countries to support decarbonisation in the developing world. Several new investments in data centres and undersea cables will not only bring in new investment, but will provide the infrastructure needed for the growth of technology and telecommunications industries,” President Ramaphosa said.
“An important part of our investment drive are the far-reaching structural reforms we are undertaking in areas such as energy, telecommunications, water and ports and rail.
“These reforms will improve efficiency and competitiveness, bringing down the cost of doing business in South Africa, and encouraging greater private investment in our economic infrastructure,” he said.
