South Africa’s Just Energy Transition Partnership (JETP) is currently working to secure loan guarantees from international partners to unlock $9.3 billion in funding aimed at shifting the country from coal dependence to renewable energy sources. The International Partners Group (IPG) supporting this climate initiative includes the U.S., EU, UK, France, Germany, the Netherlands, and Denmark.
The absence of these guarantees has delayed the release of significant funds intended to support South Africa’s green transition, essential for reducing carbon emissions. Joanne Yawitch, who leads the project management unit for JETP within the South African presidency, indicated that discussions on loan guarantees with international partners are ongoing. “We are on the edge of seeing some of that finance flowing,” Yawitch said.
South Africa’s state-owned utility, Eskom, estimates that $21 billion is required to expand its power grid, enabling it to support new renewable energy sources. This includes constructing nearly 9,000 miles of transmission lines over the next decade, more than tripling the transmission capacity built in the past ten years.
In December, the African Development Bank Group, in partnership with the UK’s Foreign Commonwealth and Development Office (FCDO), approved a $1 billion guarantee program to boost South Africa’s JET. This program will fund vital investments in energy transmission, renewable generation, grid-balancing storage, municipal electricity infrastructure, green hydrogen, and electric vehicles.
As South Africa’s renewable energy needs grow, substantial investments in transmission and capacity expansion are critical to overcoming current limitations and fully embracing the green energy transition.
