in a nutshell
At COP 27 in November 2022, South Africa launched the new Just Energy Transition Investment Plan (JET IP), announcing a five-year investment plan for a US$8.5 billion financing package. France, Germany, UK, US and EU participate in COP 26. Aligned with the Ministerial-approved National Just Transition Framework, JET IP outlines the investments needed to meet the country’s decarbonization commitments while promoting sustainable development. Ensure a just transition for affected workers and communities.
At the COP 27 World Summit in November 2022, South African President Cyril Ramaphosa launched a new Just Energy Transition Investment Plan (JET IP) for South Africa. At his COP 26 in November 2021, the governments of France, Germany, the UK, the US and the European Union pledged US$8.5 billion in a first round of financing to support South Africa’s energy transition projects. was first announced. As part of the Just Energy Transition Partnership (JETP) between the two countries. In October 2022, South Africa’s cabinet approved his five-year investment plan for a US$8.5 billion package.
Just Energy Transition Investment Plan (JET IP)
JET IP complies with the Cabinet-approved National Just Transition Framework. The South African government said the plan outlines the investments needed to achieve the country’s decarbonization commitments, while at the same time promoting sustainable development and ensuring a just transition for affected workers and communities. Said it was guaranteed. It’s a whole-of-society approach.
JET IP covers electricity, new energy vehicles (NEV) and green hydrogen, and identifies a US$98 billion funding need from both the public and private sectors over the next five years. JET IP’s goal is to decarbonise the South African economy in an equitable manner within the NDC target range of 350-420 MtCO2 by 2030. JET IP focuses on decarbonization, social justice, economic growth and inclusion, and governance. The plan’s investment criteria include projects that are catalytic in nature and ready for implementation, with greenhouse gas emission reductions and just transition outcomes.
Major investments under JET IP include:
- Electricity – decommissioning (re-energization and reuse with clean technology), grid enhancement and expansion, renewable energy.
- New Energy Vehicles – Supporting the decarbonization of the automotive sector and the transition of supply chains to green and sustainable manufacturing.
- Gaseous Hydrogen (GH2) – Critical planning and feasibility, including port investments to boost exports, boost jobs and GDP.
- Cross-cutting – skills development and investment in local government.
Also at COP 27, Masopha Moshoeshoe, a green economy expert in the Office of the President’s Office of Investment and Infrastructure, said the country will attract US$250 billion worth of investment to develop a green hydrogen energy economy by 2050. said that it is. By 2050, he will create about 1.4 million jobs and annual revenues of US$30 billion, but he will need 140,000 MW to He 300,000 MW of renewable generation capacity to supply the green hydrogen sector. did. The country currently has about 40,000 MW of renewable energy capacity.
just a transition
South Africa needs to build economic and social resilience to meet NDC targets, manage transition risks and ensure social readiness as the country diversifies its energy mix and grows new industries. there is. A just transition will link the reduction of carbon emissions with the employment implications of this transition and the need to develop long-term green energy jobs, especially for affected communities that currently rely heavily on fossil fuels. Take into account the need to balance. We also need to recognize location- and sector-specific vulnerabilities (such as care, preparedness and social infrastructure) and intergenerational impacts.
Coal remains the country’s main source of energy, but this needs to change if South Africa is to meet its carbon emissions reduction targets. Retraining of the existing workforce and education of the future workforce are also essential. South Africa will update its NDCs under the Paris Agreement in 2021 and is now proposing revised target ranges of 398 to 510 Mt CO2eq in 2025 and 398 to 440 Mt CO2eq in 2030.
A number of policy developments have been made to support South Africa’s energy transition. The National Development Plan (NDP), the Draft Integrated Energy Plan (IEP), the Renewable Energy White Paper, the National Determined Contribution (NDC), the Just Transition Framework, and enabling policies in development and implementation are all part of South Africa’s energy transition and carbon Transition from fuel energy. The Integrated Resource Plan (IRP) 2019 targets the government’s power plan to 2030, reducing reliance on coal-powered energy and promoting a diversified energy mix including renewables, distributed generation and storage batteries. It outlines increasing attention to.
The Renewable Energy Independent Power Producer Procurement Program (REIPPPP), introduced in 2011, outlined renewable energy procurement in the country. The sixth round of REIPPP will start in 2022 and aims to procure 2.6 GW of solar and wind power. The South African government has also indicated that it is proposing to remove the 100 MW distributed energy generation threshold to encourage self-generated renewable energy. This means that large power plants over 100 MW can be built without a license. , meet your own demand and sell to the grid. Other developments include the South African Automobile Master Plan, the Climate Change Bill, the South African Green Taxonomy, and an increased carbon tax, among others. Further policies such as the National Energy Efficiency Strategy and the Green Transport Strategy also have a role to play in ensuring that countries meet their climate change goals and reduce their carbon emissions.
Trading carbon offsets on carbon markets, where companies can pay other entities to offset their emissions, is also becoming popular in emerging markets. In August 2022, the Johannesburg Stock Exchange announced that it was investigating the possibility of introducing a carbon trading market in South Africa.
In February 2022, the South African Hydrogen Society Roadmap (HSRM) was published by the South African Government. The roadmap is considered a key indicator of the path towards implementation of hydrogen development, which is envisioned to be central to South Africa’s strategy for economic growth and climate change mitigation.
As part of its diversified energy mix strategy, Eskom recently identified 18 independent power producer bids for an auction related to the use of vacant land it owns in Mpumalanga, which is located near a coal-fired power plant. National power grid to enable transportation. The project will add approximately 1,800 MW of renewable power to the South African power grid.
In addition, recent amendments to the Electricity Regulation Act, proposed by the Ministry of Mineral Resources and Energy, may address, among other things, the shortage of electricity supply, the vertical structure and lack of competition in the market, and the introduction of multiple electricity supplies. – Formation of markets, including Independent Power Producers (IPPs), and Central Purchasing Agencies. The amendments also introduce day-ahead markets to meet hourly supply and demand, direct procurement of electricity by local governments, higher thresholds for on-site generation, the need to address low-carbon emission generation technologies, timing of permit applications, electricity Modification of transmission system operations, including trading, and creation of additional regulatory functions. This strategy aims to accelerate affordable, decentralized and diversely owned renewable energy systems.
Lack of access to affordable and safe electricity has had a significant impact on South Africa’s private sector for some time, given the country’s carbon reduction efforts and economic growth requirements under Just Transition It is being hailed as a means of improving access to affordable, decarbonized renewable energy on a global scale.