South Africa’s green energy road

A smooth just energy transition in Africa could benefit close to one million people employed across the mining, manufacturing, power and water value chains. Collectively, these sectors make up to 20 per cent of South Africa's gross domestic product. But getting the just energy transtion right will need combination of pragmatism, smart innovations and investtment, according to Sabine Dall’Omo, CEO Siemens and Deerosh Maharaj, Head of Power & Sustainable Solutions at Standard Bank Group join CNBC Africa for this discussion.

Thu, 18 May 2023 12:05:02 GMT

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AI Generated Summary

The urgent need for South Africa to participate in the global energy transition to meet increasing demands for carbon neutrality and ESG standards.
The potential benefits of transitioning to a green economy, including job creation, skills development, and foreign direct investment.
The importance of prioritizing investments in renewable energy and grid infrastructure to stabilize the current energy crisis and ensure long-term sustainability.

South Africa is at a crossroads when it comes to its energy transition, with a potential to benefit close to one million people employed across various key sectors such as mining, manufacturing, power, and water. These sectors collectively contribute up to 20% of South Africa's gross domestic product. Sabine Dall'Omo, the CEO of Siemens, and Deerosh Maharaj, the Head of Power & Sustainable Solutions at Standard Bank Group, recently joined CNBC Africa to discuss the importance of ensuring a just energy transition in the country. Dall'Omo highlighted the urgent need for South Africa and the African continent to participate in the global energy transition due to increasing demands for carbon neutrality and adherence to ESG standards from international markets. Failure to transform the energy sector could jeopardize South Africa's current GDP and output. However, transitioning to a green economy could open up new opportunities for foreign direct investment, job creation, and skills development. Dall'Omo also emphasized the importance of investing in renewable energy to stabilize the current energy crisis and ensure long-term sustainability. While acknowledging the short-term need to stabilize the electricity supply through all available resources, Dall'Omo stressed that renewable energy remains the most cost-effective solution in the mid-to long-term. She urged South Africa to prioritize investments in grid infrastructure to accommodate additional renewable energy sources. Maharaj echoed these sentiments, emphasizing the role of banks in supporting sustainable development and encouraging investments in green technologies. Despite recent challenges in the financial market, South Africa's strong legislative framework and successful execution of programs like the IPP demonstrate its attractiveness to foreign investors. Both speakers expressed optimism about South Africa's potential to attract the necessary funds for a just energy transition and overcome recent setbacks. The country's commitment to ESG principles and positive track record in renewable energy make it a promising destination for sustainable investments. As South Africa navigates the complexities of its energy transition, policymakers play a crucial role in creating an enabling environment for green investments to thrive. The success of South Africa's just energy transition lies in a combination of pragmatism, smart innovations, and strategic investments to build a more sustainable and inclusive economy.