Pretoria: The Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, has announced an ambitious Integrated Resource Plan (IRP) 2025 aimed at resolving the country’s long-standing electricity crisis and jump-starting economic growth. Government plans to invest R2.2 trillion, which is about 30% of the nation’s gross domestic product (GDP), in a comprehensive energy transformation strategy.
According to South African Government News Agency, this comes after last week’s announcement by Minister in the Presidency, Khumbudzo Ntshavheni, of Cabinet approving a new roadmap. Dr Ramokgopa highlighted how persistent power shortages have stunted economic development and contributed to high unemployment rates. He emphasized that electricity has been a structural constraint to the South African economy, stating, “As a result of the lights being off, the South African economy has not been able to grow, as they say in economics.”
The IRP aims to address electricity supply issues, promote economic growth, and create jobs, targeting a 3% GDP growth by 2030. Dr Ramokgopa noted the necessity of reliable electricity for industrial growth, saying, “There is no economy that grows if the lights are off. There are no industries that will decide to locate in South Africa if we can’t guarantee them available electricity that is of good quality and that is affordable.”
The plan introduces a significant shift in the country’s energy mix, with cleaner energy sources like hydro, nuclear, wind, and solar expected to surpass coal for the first time in the nation’s history. By 2039, the government aims to add 105,000 megawatts of new generation capacity-effectively expanding Eskom to “two and a half times” its current size. Key highlights include 11,270 megawatts of solar photovoltaics (PV) by 2030, 7,340 megawatts of wind energy, 6,000 megawatts of gas-to-power, and 5,200 megawatts of new nuclear capacity.
Currently, 58% of installed capacity comes from coal, with 10% from rooftop PV, 10% from grid-connected solar PV, 8% from wind, and 3% from nuclear sources. The Minister acknowledged challenges, including a limited skills pipeline and a decimated construction industry, but stressed the government’s commitment to transforming South Africa’s energy landscape and creating economic opportunities.
Dr Ramokgopa underscored the plan’s broader ambitions of economic revival and job creation, stating, “This is not just an electricity programme, but a response to an economic question.” He stressed the importance of energy security, reducing load shedding, and ensuring affordable electricity for all households.
The strategy also commits to significant emissions reductions, targeting approximately 160 million tonnes of carbon dioxide (CO2) equivalent by 2030, declining to 142 million tonnes by 2035. The Minister announced that Eskom has already shown promising improvements, with the energy availability factor rising from 48% during peak load shedding to around 70% currently, providing a strong foundation for the ambitious energy transformation.