The South African Renewable Energy Masterplan (SAREM) aims to deploy at least 3 GW of new renewable energy each year, increasing to 5 GW by 2030, while creating 25,000 jobs in the country’s renewable energy and energy storage markets.
The South African government has officially approved SAREM, a program designed to promote the industrialization and localization of South Africa’s renewable energy and energy storage value chain, while supporting the country’s transition from a centralized, carbon-intensive energy model to a decentralized, low-carbon structure.
SAREM’s main objectives include boosting local industry through at least 3 GW of new renewable energy projects per year, increasing the annual deployment capacity of renewable energy projects to 5 GW by 2030.
“Given that most module manufacturing requires annual demand of 1 GW or less (for at least 5 years) to be economically viable, this scale will be sufficient to support the growth of local manufacturing operations，”The South African government said, “Any additional expansion consistent with the country’s energy security and climate change goals will facilitate further industrial development.”
SAREM also aims to create up to 25,000 jobs in the renewable energy sector in South Africa by the end of the decade, with a focus on developing local manufacturing of key components including solar panels, inverters, wind turbine towers, cables and batteries.
According to the goals set in the plan, by 2030, the proportion of local products and related services in South Africa's solar industry will reach 50%, and the proportion of local products and related services in the energy storage industry will reach 60%.
After approving the document, South African cabinet ministers said more should be done to incentivize investors to finance the development of renewable energy suppliers. Ministers also called for the development of green hydrogen in order to meet international obligations for the aviation and maritime sectors to achieve a 5% fuel mix by 2030.
A government statement added that while the immediate focus would be on implementation, SAREM would serve as a "living document" that would be adapted and updated as technology and industry priorities evolve.
Dr Rethabile Melamu, CEO of the South African Photovoltaic Industry Association (SAPVIA), told pv magazine that the association has been a member of the steering committee since the beginning of the SAREM process and has seen first-hand how “everyone is moving in the same direction”.
“The real work begins now and we need to continue working together to make this plan a reality,” Melamu said. South Africa deploys 1.1 GW of solar in 2024, following a record year for solar additions in 2023.
