On March 27, 2025, the South African Cabinet approved the South African Renewable Energy Masterplan (SAREM), a pivotal strategy aimed at harnessing the country’s abundant renewable energy resources. This masterplan seeks to capitalize on opportunities for green industrialization through the deployment of wind, solar, and battery storage technologies, positioning South Africa as a leader in renewable energy on the African continent.
Electricity and Energy Deputy Minister Samantha Graham-Maré has been tasked with overseeing the implementation of SAREM. The plan emphasizes solar and wind energy, as well as lithium-ion and vanadium-based battery storage technologies. “The masterplan is designed to be a living document,” stated Khumbudzo Ntshavheni, Cabinet spokesperson and Minister in The Presidency. This indicates that SAREM will evolve as new technologies and market conditions emerge.
In addition to its focus on renewable energy generation, the Cabinet directed that further work be undertaken to incentivize investors to fund the development of renewable-energy suppliers. This includes integrating the production of green-hydrogen fuel to meet international commitments, specifically the target of 5% blended fuel in the aviation and maritime sectors by 2030.
Graham-Maré noted that while competing with China in solar panel production may be “wildly optimistic,” South Africa possesses the capability to manufacture many components essential for solar farms and wind facilities. She expressed confidence that SAREM could position the country as a key supplier of renewable-energy components across Africa.
“It is my opinion that the roll-out of SAREM means that South Africa is perfectly positioned to play an integral role in Mission 300,” Graham-Maré said, referring to a joint initiative by the World Bank and African Development Bank aimed at providing energy access to 300 million people in Africa by 2030. “By Africans for Africans,” she emphasized, highlighting the potential for local production to meet regional energy needs.
The significance of South Africa’s renewable energy potential was further underscored at last month’s EU-South Africa Summit held in Cape Town. European Commission President Ursula von der Leyen remarked on South Africa’s rich endowment of platinum group metals (PGMs) and its ability to catalyze a new green hydrogen economy. She stated, “You have clean energy in abundance, from wind to sun. You have raw materials that are critical for electrolysers, including 91% of the world’s PGM reserves.”
Von der Leyen’s comments came alongside the announcement of a substantial R94 billion investment package from the EU, aimed at bolstering South Africa’s green energy initiatives. This investment is seen as a critical step in enhancing the country’s capacity to produce clean hydrogen, which is poised to become a cornerstone of the global energy transition.
South Africa’s strategic positioning in the renewable energy landscape could not come at a better time, as global demand for clean energy sources continues to rise. The country’s abundant natural resources, including favorable wind and solar conditions, provide a solid foundation for the growth of its renewable energy sector.
As the world shifts towards sustainable energy solutions, South Africa’s commitment to renewable energy through initiatives like SAREM is crucial. The masterplan not only aims to meet domestic energy needs but also seeks to establish South Africa as a competitive player in the international renewable energy market.
With the implementation of SAREM, South Africa is set to enhance its energy security while contributing to global efforts to combat climate change. The focus on local manufacturing of renewable energy components will also create jobs and stimulate economic growth, further reinforcing the country’s position as a leader in the green energy revolution.
As stakeholders in the renewable energy sector prepare to engage with the opportunities presented by SAREM, the importance of collaboration between government, industry, and investors cannot be overstated. By working together, South Africa can not only meet its energy goals but also inspire other nations in the region to pursue similar paths towards sustainability.
In conclusion, the approval of the South African Renewable Energy Masterplan marks a significant milestone in the country’s journey towards a sustainable energy future. With the right investments and strategic partnerships, South Africa is poised to become a key player in the global renewable energy landscape, driving economic growth and providing clean energy solutions for generations to come.
