South Africa faces a critical energy challenge: securing a stable power supply while transitioning to a low-carbon future. The African Energy Chamber’s State of African Energy 2025 Outlook Report provides a detailed analysis of this shift, highlighting the country’s continued reliance on coal, the slow pace of renewable energy integration and the urgent need for infrastructure investments to modernize the grid. These insights will set the stage for key discussions at African Energy Week (AEW) 2025: Invest in African Energies, where industry leaders will examine how South Africa and other mature markets across the continent can balance energy security with decarbonization.
Coal remains the cornerstone of South Africa’s power generation, contributing over 80% to the energy mix. This heavy reliance has led to ongoing load-shedding – constraining industrial productivity, discouraging investment and limiting GDP growth to less than 1% annually over the past decade. Addressing this crisis requires urgent intervention through infrastructure investment, diversification of the energy mix and policy reforms to enhance grid stability and efficiency. This will be a key focus for stakeholders at AEW 2025, where discussions will center on accelerating the transition to a more resilient and diversified energy system, enhancing the role of renewables and gas-to-power solutions, and attracting critical investments to modernize the grid and reduce dependence on coal.
In response to the energy crisis, South Africa has embarked on integrating renewable energy sources. The Renewable Energy Independent Power Producer Procurement Program has been instrumental, with over 7.2 GW of solar PV and 3.6 GW of onshore wind capacity installed by the end of 2023, collectively accounting for over 17% of the country’s total installed capacity. Gas-to-power projects have also emerged as a viable solution, with the government issuing requests for proposals for 2 GW of such projects in late 2024. Concurrently, battery energy storage systems are being developed, with the Department of Mineral Resources and Energy launching bid rounds totaling over 1.7 GW/6.9 GWh of storage capacity.
South Africa’s Just Energy Transition Investment Plan has drawn global interest, securing $8.5 billion in commitments from partners including France, Germany, the UK, the US and the EU. However, disbursement remains a challenge, with only $1.9 billion allocated to date – primarily for grid expansion and support for coal-mining communities. As the country navigates the complexities of a large-scale transition, key issues such as grid constraints, the integration of renewables and ensuring a stable, sustainable energy supply will be addressed at AEW 2025.
Taking place in Cape Town, AEW 2025: Invest in African Energies serves as the premier platform for South Africa and the broader African continent to tackle the critical energy challenges shaping the region’s future. The event will highlight strategies to integrate cleaner energy sources while maintaining grid stability and affordability, as well as emphasize modernization of grid infrastructure, addressing capacity constraints and enhancing transmission networks to support a diversified energy mix.
Beyond technical solutions, securing large-scale investments will be a key priority, as Africa seeks to attract capital for sustainable energy projects that ensure both energy security and environmental responsibility. By convening industry leaders, policymakers, financiers and innovators, AEW 2025 will drive forward collaborative solutions, policy reforms and strategic partnerships essential for unlocking Africa’s full energy potential and fostering long-term economic growth.
Africa Fact: West Africans built in stone by 1100 BC. In the Tichitt-Walata region of Mauritania, archaeologists have found “large stone masonry villages” that date back to 1100 BC. The villages consisted of roughly circular compounds connected by “well-defined streets”.
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Patrice Motsepe – Founder of ARM (African Rainbow Minerals): After a successful career as a lawyer at Bowman Gilfillan, in 1997, Motsepe launched a business of his own called ARM (African Rainbow Minerals). He turned it into one of the largest mining and mineral groups in the world. Since then, he has diversified into several other key sectors, including financial services. In 2008, Motsepe became a billionaire and the first black African on the Forbes list. In 2016, he invested in a USD1 billion fund as part of the Breakthrough Energy Coalition, launched by Bill Gates. He also launched a new private equity firm, African Rainbow Capital, which is focused on investing in Africa. In 2017, he was ranked as South Africa\’s fifth richest person, with a fortune exceeding R1.3 billion.