Insights from the latest Forvis Mazars Powering Africa’s Future energy report show that South Africa remains the nation leading Africa’s renewable energy transition, offering a host of investable projects and emerging opportunities in 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 rich endowment of solar and wind resources and pioneering renewable energy independent power producer programme (REIPPP) place the country at the forefront of the continent’s renewable energy transition.
According to the report, solar capacity on the continent grew by 25% in 2024, with solar generation advancing rapidly in Southern Africa, where South Africa remains the regional leader.
Driven by a need to offset national grid deficits, South Africa’s proactive solar and wind development policies in the form of the REIPPP have created a blueprint for enabling regulations related to renewable energy across the continent.
Large-scale investment in the country means South Africa led energy production from renewable sources in 2024, generating over 50 terawatt-hours (TWh) from a combination of hydroelectric (10,1 TWh), solar (8 TWh), wind (9 TWh) and other renewable sources (27,1 TWh).
The report also highlights additional opportunities in green hydrogen and biofuels, with South Africa one of several countries ideally positioned for green hydrogen production and export due to its ability to leverage exceptional solar and wind potential and rising European demand.
Furthermore, South Africa is investing heavily to develop its biofuels sector, supported by enabling policies and international partnerships.
Additional investments place the country at the forefront of carbon capture solutions, smart grids and solar mini-grid projects, with pilots multiplying in these areas.
South Africa also contributes significantly to Africa’s supply of the critical minerals needed to support the global energy transition, with a diverse range of natural resources, including platinum group metals (PGMs), cobalt, and titanium.
In addition to its resource endowments, South Africa is one of a handful of African countries identified in the report that has a structured framework that supports growth and investment in the energy sector.
“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,” asserts Marais.
Specifically, the Integrated Resource Plan (IRP 2019) reduces reliance on coal in favour of a diversified mix including wind, solar, and storage, and the Energy Action Plan 2022 aims for stable supply through renewable energy, with progressive regulations allowing the integration of independent private producers (IPP) and the improvement of the transmission network.
“More recently, the new Upstream Petroleum Resources Development Act (UPRDA), signed into law by the President in 2024, establishes a more investor-friendly environment for oil and gas exploration and production,” continues Marais.
“While this bill is not yet in force, it reflects South Africa’s move to integrate processing and local participation into petroleum legislation.”
Johan Marais, Director at Forvis Mazars in South Africa
With private generation expanding and upstream frameworks evolving, Marais says company boards require expert advice and guidance to convert policy change into execution. “Clients want to know where to move first and how to structure resilient projects.”
Looking ahead, Marais asserts that continued investment in renewable infrastructure, coupled with regulatory advances in the hydrocarbon sector, will position South Africa favourably to diversify its energy mix, ensure long-term energy security, attract new capital, and drive inclusive economic growth.
“These factors, coupled with a population exceeding 63 million and a GDP of about US$400 billion, South Africa remains an economic heavyweight on the continent, presenting significant opportunities for energy sector investment,” he concludes.
