This article has been updated to include comment from the Ministry of Electricity and Energy.
The South African Cabinet has officially approved the South African Renewable Energy Masterplan (SAREM), which outlines plans to expand the country’s renewable energy and storage industries and support local manufacturing of key components.
According to a statement issued after the Cabinet meeting on March 26, SAREM is designed to be a “living document” focused on the development of solar and wind energy technologies and battery storage solutions based on lithium-ion and vanadium chemistries.
The approval follows a commitment made earlier this month by Deputy Minister of Electricity and Energy Samantha Graham-Maré who said delays in Cabinet approval have persisted for too long. Speaking in a webinar, she said: “I am adamant that we will not let another month pass without SAREM being signed off.”
“SAREM is not just a blueprint for energy generation; it is a pathway to a more sustainable and equitable future for all South Africans. We have a unique opportunity to lead in the global renewable energy landscape,” said Minister of Electricity and Energy, Kgosientsho Ramokgopa.
“While the immediate focus will be on implementation, the masterplan is a living document – one that will be adapted and updated to accommodate emerging technologies and sectoral priorities.
“Beyond wind, solar and battery storage, future iterations of SAREM will consider the integration of additional renewable technologies, including the fast-emerging green hydrogen sector, concentrated solar power, and waste-to-energy solutions,” he said.
Targets and strategic interventions
The plan sets a target of 14,4 GW in additional renewable energy capacity by 2030, including 9 GW of solar PV and 5,4 GW of wind, aligned with the Integrated Resource Plan. It also outlines the development of local manufacturing capacity for components such as solar panels, inverters, wind turbine towers, blades and batteries, with a goal of creating over 48 000 direct and indirect jobs.
It supports the establishment of renewable energy manufacturing hubs and special economic zones, with a local content target of 60% for key inputs. “By diversifying energy sources and embedding storage solutions in the grid, the plan will improve the resilience and reliability of supply, particularly in underserved and vulnerable communities,” Ramokgopa said, adding that the plan identifies rural and historically marginalised areas as priority sites for project development, with a focus on combining energy access with local economic participation through community ownership models and enterprise development.
Cabinet also directed that further work be done to strengthen the masterplan’s impact. This includes developing mechanisms to incentivise investor participation in renewable energy supplier development and expanding the masterplan to incorporate green hydrogen fuel. The inclusion of green hydrogen is intended to help South Africa meet its international commitments for a 5% blended fuel requirement in aviation and maritime transport by 2030.
The approval of SAREM, in development since 2022, aligns with broader efforts under Phase 2 of Operation Vulindlela – a joint initiative of the Presidency and National Treasury to unlock structural reforms in the energy sector.
Flagship event
The Ministry of Electricity and Energy will host the South African Renewable Energy Expo later this year – a flagship event that will provide a platform to attract both domestic and international investors, highlight local industrial capabilities and convene technology developers, financiers and policy leaders in support of the plan’s objectives, Ramokgopa said.
The full SAREM document will be made available on 1 April 2025.
