Core area “Climate and energy, just transition” Generating more electricity from wind and sun

South Africa has been faced with inadequate energy supplies for many years. At the same time, it needs to transform its power generation sector in order to achieve the international climate goals. Currently, more than 90 per cent of the country's power generation is coal-based, making South Africa one of the world's largest emitters of greenhouse gases.

Wind turbines in South Africa

Wind turbines in South Africa

Wind turbines in South Africa

South Africa's government has set itself ambitious targets in the area of renewable energy and energy efficiency. Wind and solar power generation is to be expanded, and carbon emissions are to be reduced significantly. However, the government has stated clearly that South Africa will only be able to achieve these targets with the help of the international community.

Plans to exit from coal

At the Glasgow climate conference (COP26) in November 2021, Germany, the UK, the US, France and the EU announced that they would assist South Africa in its efforts to exit from coal-based power generation. 8.5 billion US dollars is to be provided for this support over the next five years, mainly in the form of loans. Germany is contributing almost 700 million euros to this, of which 670 million will be provided by the BMZ.

Examples of German activities

Together with the private sector, GIZ (on behalf of the BMZ) is advising South Africa's Department of Energy, the national power utility and South African districts and municipalities on how to promote the use of renewable energies and improve energy efficiency. It is supporting the construction of large-scale wind farms and decentralised rooftop photovoltaic installations.

As part of Financial Cooperation, reduced-interest loans are being offered via South African financial institutions to small and medium-sized businesses wishing to invest in renewable energy and energy efficiency measures. In addition, KfW Development Bank (on behalf of the BMZ) is supporting measures to modernise the transmission and distribution grids so that energy from renewable sources can be fed into the grid.

As at: 27/12/2022