South Africa has embarked on an ambitious renewable energy pathway that stands to transform the country. In this interview, Vincent Obisie-Orlu and Mischka Moosa, from the Natural Resource Governance and Climate Change Programme at Good Governance Africa, discuss South Africa’s Renewable Energy Masterplan (SAREM), assessing how the country can transition from ambition to action.
South Africa’s renewable energy ambitions are evolving beyond clean electricity generation into a full-scale industrial strategy aimed at economic renewal.
With the launch of the South African Renewable Energy Masterplan (SAREM), the country has set its sights not only on expanding its green energy footprint but also on building a domestic manufacturing ecosystem for solar panels, wind turbines, and battery technologies.
Earlier this month, bird story agency explored how the SAREM framework marks a pivotal shift – from merely installing renewables to anchoring a new era of industrial growth.
SAREM targets R15 billion (more than $800 million) in investment and 25,000 new jobs by 2030, fueled by a plan to add 3 to 5 GW of renewable capacity annually, up to 2030.
Reducing South Africa’s current reliance on imported solar and battery technologies — valued at over R17.5 billion (more than US$940 million) in 2023 – stands at the heart of this vision.
Success would mean tapping into the country’s rich endowment of critical minerals like manganese, vanadium, and platinum, which could position South Africa as a key player in clean technology manufacturing.
But challenges loom, from the urgent need for a $21 billion grid upgrade to closing a growing skills gap in the renewable sector.
In this follow-up, bird spoke with Vincent Obisie-Orlu and Mischka Moosa, both from the Natural Resource Governance and Climate Change Programme at Good Governance Africa, a research and advocacy nonprofit.
In this interview, Obisie-Orlu and Moosa explore what it will take to bridge the gap between vision and reality.
This interview has been edited for length and clarity.
To set the scene before we dive into SAREM, how would you assess South Africa’s renewable energy journey to date – what have been the key milestones, and where do we stand now in terms of progress and challenges?
Mischka Moosa: South Africa’s renewable energy journey has been complex but progressive. Key frameworks like the Integrated Resource Plan (IRP) and the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) have significantly shaped the landscape.
These initiatives laid an important groundwork for where we are today, including the development of SAREM. That said, the process hasn’t been without challenges – persistent issues like political uncertainty, grid constraints, and regulatory delays have slowed momentum at times.
Still, each phase, even with its setbacks, has served as a stepping stone. SAREM now feels like a promising next chapter, and the focus will be on how effectively it’s implemented moving forward.
Vincent Obisie-Orlu: South Africa’s renewable energy journey begins with the 1998 Energy White Paper – our first major policy statement on energy.
That was followed by the 2003 Renewable Energy White Paper, which set the stage for integrating renewables into the energy mix. The initial push came through the Renewable Energy Feed-in Tariff (REFIT), but that model faced challenges and was eventually replaced by the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), which Mischka mentioned. REIPPPP became the country’s flagship renewable energy programme.
From there, we saw further developments through the 2010 and 2019 iterations of the Integrated Resource Plan (IRP), which helped guide national energy policy. But after an early burst of momentum, progress slowed — especially around local industrialization and capacity building. Much of that was due to policy uncertainty during that time.
Under President Ramaphosa, though, there’s been renewed energy and recognition that a comprehensive industrial strategy is needed. That’s where SAREM comes in – not just as a plan to generate renewable power, but as a framework to build an entire renewable energy value chain in South Africa. It aligns closely with the broader goals of the Just Energy Transition Partnership, laying a foundation for a full shift from fossil fuels to renewables.
How well do you think SAREM aligns – or doesn’t align – with South Africa’s broader industrial policies around localization and inclusive economic growth?
Moosa: SAREM is fundamentally about bridging the gap between South Africa’s energy and climate goals and its broader industrial development ambitions. It aligns closely with existing national policies, which helps build confidence in its potential.
One of SAREM’s key strengths is its level of specificity. It clearly outlines the stakeholders it intends to engage and provides a clear framework for how this will happen. This level of detail is crucial for attracting private sector investment and ensuring broad-based support.
What really sets SAREM apart is its forward-thinking approach. By linking renewable energy projects to long-term investments in South Africa’s manufacturing sector and industrial hubs, it fosters the growth of local industries.
In terms of inclusive economic growth, SAREM is also very promising. It incorporates localization requirements, actively engages local communities, and aligns with Black Economic Empowerment (BEE) frameworks. It’s heartening to see these priorities explicitly included.
Finally, SAREM stands out for its measurable and clear targets, which enhance its accountability compared to some past initiatives. This structured approach gives SAREM the potential to deliver tangible outcomes.
Obisie-Orlu: What sets SAREM apart is that it’s not just an energy roadmap – it’s fundamentally an industrial development plan. A key feature of SAREM, as shown in Figure 6 of the document, is that it maps out the entire renewable energy value chain, from project planning and installation to decommissioning.
The plan integrates seamlessly with existing frameworks and highlights opportunities for both public and private procurement. It connects project development, installation, grid connection, operations, and even end-of-life decommissioning.
SAREM doesn’t rely on abstract ambitions. Instead, it structures a practical, actionable industrial policy framework linked to energy. It outlines the necessary steps to domestically develop renewable energy technologies, while also identifying key elements such as market infrastructure, regulatory reforms, and investment needs.
Importantly, SAREM recognises past shortcomings – particularly the inconsistencies that hindered earlier localization efforts during the REIPPPP windows. It takes a proactive approach, proposing solutions to avoid repeating those mistakes.
At its core, SAREM is about developing a renewable energy industrial value chain. It clearly identifies key players, including Original Equipment Manufacturers (OEMs), partners, timelines, and required interventions. It also aligns with the broader Just Energy Transition (JET) agenda, ensuring a smooth transition as we decommission coal plants, retrain workers, and build new industries.
This is what distinguishes SAREM: It’s a high-level, solutions-driven framework that brings together government, the private sector, and local communities to drive industrial development linked directly to renewables.
What would you say are the main performance indicators stakeholders should watch to assess whether SAREM is on track?
Moosa: First, SAREM aims to accelerate the government’s response and procurement processes for renewable energy. With a focus on building industries, a key performance indicator (KPI) will be the growth in installed renewable capacity, targeting around three gigawatts (GW) per year. While some officials have expressed uncertainty about consistently meeting that exact target annually, the intent remains clear.
Second, job creation is a critical KPI, particularly given SAREM’s emphasis on tackling youth unemployment. The 2030 targets should serve as clear benchmarks to track progress.
Third, SAREM is committed to supporting black-owned businesses, SMEs, and communities transitioning away from coal. Therefore, monitoring the inclusion and success of these groups in renewable energy projects will be essential.
Fourth, investment flows – especially from the private sector – will be another important indicator of confidence in the framework and its implementation. Finally, the overall uptake of clean technology will be a key measure of whether SAREM’s ambitions are translating into tangible results on the ground.
Obisie-Orlu: Just to add a few thoughts, one of the most important – but often overlooked – indicators is the level of local manufacturing within the renewable energy value chain.
SAREM really needs to be evaluated on how much local content it generates, not just on the number of renewable energy projects that get rolled out. That’s a crucial part of ensuring the plan creates lasting, homegrown economic value.
Other key indicators to watch include the development of technical and artisanal skills in the renewable energy sector and how well we’re able to deepen localization in industrial manufacturing tied to renewables.
It’s also important to see how SAREM fits with existing frameworks, like the REIPPPP and the JET Partnership. Those connections will be vital to ensuring alignment across the sector.
Another point to consider is the uptake of public ownership models and worker participation, something advocated by organizations like the IHA. These aspects could be game-changers in making sure we have an inclusive and just transition.
Finally, we need to give SAREM some time to fully roll out. Policy frameworks like this can’t be evaluated overnight – they need a realistic timeline to show concrete results. It’s about taking a longer view and seeing how it unfolds over time.
As we focus on industrialisation and localisation, are there existing baselines or local industries that serve as strong starting points for SAREM’s implementation?
Obisie-Orlu: First off, skills development is a fundamental starting point. There are already a number of projects in place across universities and artisan training centers that are focused on building skills in the renewable energy and manufacturing sectors. That’s a solid foundation to build on.
Next, we have small-scale solar manufacturers here in South Africa, though they still need more support to scale up and compete on a global level. Providing them with things like preferential procurement policies and better financing options will be key.
Then there’s the Atlantis Special Economic Zone, which is a fantastic example of a localised industrial hub focused on green technologies. It has real potential to become a key player in scaling up renewable energy manufacturing.
Lastly, we’ve already made some headway in areas like vanadium and lithium-ion battery manufacturing, as well as wind turbine component production. The next step for SAREM is to strategically link these emerging industries to its broader goals around localization and industrialisation.
Moosa: We’ve definitely learned some important lessons from previous initiatives like the REIPPPP. For example, the success of tax incentives and streamlining regulations under REIPPPP shows that the right policy moves can really drive momentum. The challenge now is making sure that SAREM is even more collaborative, transparent, and accountable.
This is especially important when it comes to areas like grid expansion, building private sector partnerships, and making sure small businesses and communities are included in the process.
Speaking of partnerships, could we quickly discuss the key stakeholders and policies that will be needed to ensure SAREM’s success?
Moosa: Public-private partnerships (PPPs) will be key to making SAREM work. It’s good to see that SAREM outlines ways to attract private sector investment. Things like tax incentives, preferential procurement policies, partnerships with OEMs (original equipment manufacturers), and working closely with SMEs will all be crucial. But we also need strong involvement from civil society to ensure that economic inclusion and social benefits are at the forefront of this transition.
Obisie-Orlu: Exactly. Since SAREM is fundamentally an industrial policy framework, it’s crucial that clear roles and expectations are set for each stakeholder involved. But even more importantly, those stakeholders — whether from government, industry, or civil society — need to take real ownership of their roles.
Right now, there’s a lot of enthusiasm around SAREM, which is great, but the true test will come when it’s time to implement. We’ll need to ask some important questions in the first year: How quickly can policies be put into action? How well are different parties collaborating – or, in some cases, clashing? And how swiftly are issues like grid constraints or skill shortages being addressed?
Only after we’ve seen the answers to those questions will we be able to gauge how much SAREM is truly living up to its ambitions and where adjustments might be needed.
About the experts
Vincent Obisie-Orlu is a Natural Resource Governance researcher at Good Governance Africa. He holds a BA in International Relations and Political Studies from the University of the Witwatersrand. His work focuses on natural resource governance of critical minerals, Environmental Social and Governance (ESG) issues, sustainable finance, and energy policy in light of the energy transition.
Mischka Moosa is a researcher and data journalist in the Natural Resource Governance and Climate Change programme at Good Governance Africa (GGA). She holds a Bachelor of Social Science (Honours) in Political Science from the University of Cape Town (UCT). Her focus is on advancing justice, sustainable development, and transformative governance across the African continent, with particular interest in the intersections of environmental policy, resource management, and social equity.
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