The Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, has unveiled the ambitious Integrated Resource Plan (IRP) 2025, aimed at resolving South Africa’s long-standing electricity crisis and stimulating economic growth.

Government plans to invest R2.2T — around 30% of the country’s gross domestic product (GDP) — in a comprehensive energy transformation strategy.

This follows last week’s announcement by Minister in the Presidency Khumbudzo Ntshavheni that Cabinet had approved a new roadmap.

Energy to become ‘a catalyst for growth’

“As a result of the lights being off, the South African economy has not been able to grow, as they say in economics. Electricity has been a structural constraint to the South African economy,” Ramokgopa said at a media briefing today.

He noted that persistent power shortages have hindered development and contributed to high unemployment.

“Now that we have turned the corner on load-shedding, we are addressing the future. Energy now ceases to be a crisis; energy and electricity are going to be a catalyst for growth,” said Ramokgopa.

The IRP aims to stabilise electricity supply, promote growth and create jobs, targeting a 3% GDP increase by 2030.

“There is no economy that grows if the lights are off. There are no industries that will decide to locate in South Africa if we can’t guarantee them available electricity that is of good quality and that is affordable.”

Cleaner energy to surpass coal

The plan marks a major shift in South Africa’s energy mix, with renewable sources such as hydro, nuclear, wind and solar expected to overtake coal for the first time.

By 2039, government aims to add 105 000MW of new generation capacity — effectively building Eskom ‘two and a half times’ its current size.

Key targets include 11 270MW of solar photovoltaics (PV) by 2030, 7 340MW of wind power, 6 000MW of gas-to-power, and 5 200MW of new nuclear capacity.

Currently, 58% of South Africa’s installed capacity comes from coal, with 10% from rooftop PV, 10% from grid-connected solar PV, 8% from wind and 13% from nuclear.

Addressing challenges and skills shortages

Ramokgopa acknowledged key challenges, including a limited skills pipeline and a weakened construction sector, but reaffirmed government’s commitment to transforming the energy landscape.

“This is not just an electricity programme, but a response to an economic question,” he said, adding that the plan also aims to revive industries and create new skills.

“We’re talking about growth, industrialisation, new skills and resuscitating collapsed industries.”

Focus on affordability and access

The minister said energy security, reduced load-shedding and affordable electricity remain priorities.

“We want to ensure that each household has access to this electricity and this electricity is affordable, and we can guarantee it into the future. That’s the point that we are making.”

He linked human development to economic growth, saying energy access was central to achieving national goals.

“For as long as there is no electricity, for as long as the lights are off, we are going to undermine the country’s potential to achieve its ambitions of growth and ensure that we can attract the necessary investments.

“That’s what we are resolving now. It’s not just about the megawatts. We are constructing a story about how we’re going to get the South African economy back on its feet.”

Lowering emissions and improving reliability

The strategy commits to cutting emissions by targeting 160 million tonnes of carbon dioxide equivalent by 2030, falling to 142 million tonnes by 2035.

Ramokgopa added that Eskom has already shown significant improvement, with the energy availability factor rising from 48% during peak load-shedding to about 70% — a strong base for the transformation ahead. – SAnews.gov.za

---

Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel.

Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal.