South Africa’s energy transition towards a more sustainable and equitable future presents significant opportunities, particularly Black Economic Empowerment (BEE) participation in renewable energy procurement.
South Africa’s commitment to a sustainable and equitable energy future is encapsulated in its Just Energy Transition (JET) strategy. This approach aims to shift from a coal-dependent energy system to a diversified mix of renewable sources, ensuring that the transition benefits all sectors of society. In 2021, South Africa initiated the Just Energy Transition Partnership (JETP) with international partners, securing $8.5 billion to support decarbonisation efforts. This collaboration focuses on reducing greenhouse gas emissions and promoting renewable energy projects.
The JET Investment Plan (JET IP) for 2023–2027 outlines a need for approximately R1.5 trillion over five years to achieve these goals, targeting investments in electricity infrastructure, green hydrogen production, and electric vehicle manufacturing.
In his 2025 State of the Nation Address, President Cyril Ramaphosa emphasized the critical role of energy reform in South Africa’s economic growth, indicating further investment into renewable energy projects. Additionally, the South African Renewable Energy Masterplan (SAREM) builds on the momentum created by the REIPPP to build a sustainable renewable energy sector leveraging local manufacturing, thus presenting further opportunities specifically for South African green energy manufacturing companies.
A key requirement for renewable energy projects in South Africa is meaningful BEE participation. Tamela has extensive expertise in the structuring of financing BEE transactions that ensure regulatory compliance while aligning with commercial objectives.
Opportunities in South Africa’s energy transition
Beyond REIPPPP, the evolving energy landscape presents further opportunities for private-sector involvement, including:
- Grid infrastructure development: With increased renewable energy generation, there is a need for expanded and upgraded grid infrastructure. Private companies can engage in developing transmission and distribution networks to support new projects.
- Green hydrogen and battery storage: The demand for alternative energy solutions, such as green hydrogen and battery storage, is growing, creating investment and development opportunities.
- Electric Vehicle (EV) infrastructure: The JETIP also includes investment in EV manufacturing and charging stations, offering a lucrative market for private businesses.
- Solar Photovoltaic technology (solar PV), wind, and hydroelectric power: The JETIP focuses on the expansion of utility-scale solar farms and local manufacturing of PV components, funding for offshore wind development along South Africa’s coastline as well as investment in small-scale hydroelectric plants for rural electrification.
- Energy project financing: The elimination of the debt portion in the latest REIPPPP bid structure provides an easier entry point for new market participants, as projects can now secure financing without requiring significant upfront debt obligations.
As South Africa accelerates its transition to cleaner energy sources, ensuring BEE compliance and securing financial sustainability remain critical for success.
How can we help?
With its deep expertise in corporate finance, BEE deal structuring, and energy sector advisory, Tamela is well-equipped to support developers, investors, and businesses in navigating the complexities of the JET. This includes:
- Equity structuring to ensure sustainable and beneficial participation for black-owned entities.
- Funding solutions through innovative financial models.
- Capital raising to secure investment for renewable energy projects.
For more information contact Cwayita Kweyi on +27 11 783 4907 or cwayita@tamela.co.za.