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Energy ministry calls for more local content after R17bn spent on renewables
10 Nov 2024
Deputy Minister of Energy and Electricity, Samantha Graham-Maré, revealed that South Africa has imported R17bn worth of renewable energy materials – including solar panels, inverters, and lithium-ion batteries – in just the first nine months of 2024. This import figure reflects a growing demand for renewable energy solutions, with total imports in the sector now exceeding R180bn since 2014.
Graham-Maré raised concerns about this import reliance and used it to illustrate an urgent need for domestic manufacturing in the renewable sector.
“We are standing at the cusp of a transformative moment for South Africa,” she said.
“This massive demand for renewable energy solutions presents a clear opportunity to not only address energy access and affordability but also to generate substantial economic growth.”
The announcement aligns with the government’s commitment to implement the South African Renewable Energy Masterplan (Sarem), an initiative focused on driving local production of renewable energy components, which has the potential to create thousands of jobs and reduce dependency on imported products.
United front
Minister of Energy and Electricity, Dr Kgosientsho Ramokgopa, has been vocal about the need to embed local content into South Africa’s renewable sector.
In response to Bizcommunity questions at this year’s Windaba, Ramokgopa highlighted that the focus on imports alone has previously stalled meaningful local participation in the industry.
“We are desirous of ensuring local communities have a meaningful participation point,” he remarked.
One of the biggest critiques around previous project cycles has been the lack of local content. For us, it’s not just about adding megawatts to the grid, but ensuring that the impact extends to community upliftment and skills development.
Ramokgopa added that the government’s priority lies in building an industry that provides more than just energy.
“On the back of predictable, consistent progress, we can build an industry that addresses local content and industrialisation while generating economic benefits for the nation.”
He also acknowledged the challenges in balancing the financial viability of renewable energy projects with local industry demands but reiterated that “our position is that we’re going to do both.”
Partnership with private sector
The energy ministry’s approach is to lean on partnerships with private developers to ensure alignment on localisation goals.
By enhancing manufacturing capabilities and developing skills within South Africa, the government aims to reduce dependency on imported renewable products, which, while meeting immediate energy demands, currently lack long-term economic sustainability for the country.
The current state of imports paints a clear picture of South Africa’s unmet potential in renewable energy.
“By unlocking local manufacturing and creating a thriving green economy, we will build the foundation for a prosperous future for South Africa,” said Graham-Maré.
With the launch of Sarem, the ministry is setting a course towards a locally empowered, sustainable renewable energy sector that promotes economic resilience and job creation across the nation.
