Recently, the South African government officially approved and initiated the implementation of the “South African Renewable Energy Master Plan” (SAREM), which stipulates that a minimum of 3 GW and a maximum of 5 GW of renewable energy capacity must be added annually by 2030.
The plan focuses on solar, wind, and battery energy storage as immediate priorities in the short term, aiming to establish a low-carbon, reliable, and economically affordable energy system. The South African government defines SAREM as a “dynamically evolving” document that will incorporate emerging technology pathways such as green hydrogen and waste-to-energy in the future, based on technological advancements.
To enhance the resilience and sustainability of the energy supply chain, SAREM proposes the development of local manufacturing capabilities for critical equipment such as solar modules, inverters, wind turbines, cables, and batteries. This initiative is expected to create over 250,000 jobs by 2030.
Kgosientsho Ramokgopa, the Minister of Electricity and Energy of South Africa, stated, “SAREM is not only a blueprint for green industrialization but also a pathway to a sustainable and equitable future. We have the opportunity to take a leading position in the global renewable energy and energy storage industries, promoting economic growth and job creation while protecting the environment.”
SAREM will also encourage the establishment of industrial parks and Special Economic Zones (SEZs) to promote the clustered development of the renewable energy manufacturing industry.
The South African Photovoltaic Industry Association (SAPVIA) welcomed the introduction of SAREM, noting that photovoltaic modules and their value chain have become key areas of policy focus. Additionally, localization opportunities include manufacturing inputs required for photovoltaic racking systems, inverters, electrical, and balance-of-plant (BoP) systems.
According to data from the African Solar Industry Association (AFSIA), South Africa added 1.235 GW of new photovoltaic capacity in 2024, making it the only country in Africa to join the “GW Club.” Currently, commercial and industrial projects, as well as large-scale transmission projects, remain the primary drivers of market growth.
Despite the decline in South Africa’s share of new installations in Europe from 79% in 2023 to 46% in 2024, according to the Global Solar Council, the country continues to lead the African solar market.
