Insights from the latest Forvis Mazars Powering Africa’s Future energy report highlight South Africa as a leading nation in Africa’s renewable energy transition. The country is not only ripe with potential but is also paving the way for investable projects across various energy sectors, including wind, solar, biofuels, and green hydrogen.
“South Africa boasts exceptional renewable energy resources, such as abundant solar and wind potential, and recent policy progress further supports energy transition ambitions,” states Johan Marais, Director at Forvis Mazars in South Africa.
South Africa’s diverse resources put it at the forefront of the continent’s renewable energy developments. The country has recognized its rich endowment of solar and wind resources and has initiated pioneering programs such as the Renewable Energy Independent Power Producer Procurement Programme (REIPPP). This program has become a blueprint for policy frameworks aimed at enabling renewable energy across Africa.
According to the report, solar capacity on the continent surged by 25% in 2024, with South Africa emerging as a regional leader in solar generation. The nation’s proactive solar and wind development policies, which are largely driven by the necessity to address national grid deficits, have resulted in significant advancements in energy production. In 2024, South Africa generated over 50 terawatt-hours (TWh) from renewable energy sources, including hydroelectric (10.1 TWh), solar (8 TWh), wind (9 TWh), and various others (27.1 TWh).
Additionally, the Forvis Mazars report points to lucrative opportunities in green hydrogen and biofuels. South Africa is ideally positioned to produce and export green hydrogen due to its favorable solar and wind conditions, as well as increasing demand from European markets. Furthermore, investments in the biofuels sector continue to grow, bolstered by favorable policies and international collaborations.
South Africa is also making significant strides in carbon capture technologies, smart grids, and solar mini-grid projects. These initiatives illustrate a broadening approach to energy and environmental sustainability, with pilot projects emerging across various sectors. The country’s varied natural resources further strengthen its role in the global energy transition, especially through its supply of critical minerals such as platinum group metals (PGMs), cobalt, and titanium.
Beyond its natural resources, South Africa stands out because it has a structured framework that facilitates growth and investment in the energy sector. Marais emphasizes this by stating,
“With their sector-specific legislation, feed-in tariffs, competitive auctions or net metering, and an independent regulator, these countries are considered pioneers and attract the majority of investments.”
Specifically, the Integrated Resource Plan (IRP 2019) aims to diminish reliance on coal and promote a diversified energy mix that includes wind, solar, and energy storage solutions. The Energy Action Plan 2022 outlines efforts to ensure a stable supply of renewable energy while advancing regulations to incorporate independent power producers (IPPs) and improve transmission networks. More recently, the Upstream Petroleum Resources Development Act (UPRDA), signed into law in 2024, is anticipated to create a more favorable environment for oil and gas exploration, highlighting a commitment to integrating local participation into the sector.
Johan Marais, Director at Forvis Mazars in South Africa
As the landscape of energy generation diversifies with the expansion of private generation and the evolution of upstream frameworks, Marais recognizes the increasing demand for expert guidance among company boards.
“Clients want to know where to move first and how to structure resilient projects,” he mentions, underscoring the importance of strategic planning in navigating the evolving energy market.
Looking ahead, continuous investments in renewable infrastructure combined with regulatory advancements in the hydrocarbon sector are expected to position South Africa advantageously. This unique combination strives to secure a long-term energy future, attract new investments, and drive inclusive economic growth. With a population exceeding 63 million and a GDP of approximately US$400 billion, South Africa affirms its status as an economic heavyweight on the continent, thereby creating ample opportunities for energy sector investment.
