Skip to main content
News

South Africa to invest billions of dollars in electrical infrastructure

By November 7, 2022No Comments

The South African government will spend the majority of an $8.5 billion (R152 billion) climate funding package provided by wealthier nations on enhancing its energy supply.

According to a Friday investment proposal, 90% of the funds would go toward closing coal-fired power plants, increasing the generation of renewable energy, strengthening the transmission network, and modernizing the electrical distribution system.

The green hydrogen and electric vehicle industries will be advanced with the remaining funds.

The funding, pledged by the US, UK, the European Union, Germany, and France, was unveiled at last year’s United Nations-led climate talks in Glasgow, Scotland. The investment plan comes the week before world leaders gather at the follow-up summit in Egypt. The so-called “Just Energy Transition Partnership” is expected to serve as a prototype for similar deals with coal-dependent, developing nations such as Vietnam, Indonesia, and India.
 
South Africa is the world’s 13th-biggest source of greenhouse gases, with 45% of its annual 452 million tons of emissions coming from electricity generation. The package is key to closing many of the nation’s old and malfunctioning coal-fired plants and replacing them with renewable sources.

Over the next five years, the investment plan anticipates spending $7.6 billion on power infrastructure, $700 million on green hydrogen project development, and $200 million on the electric vehicle market.

With $47.2 billion needed for the power industry, $21.2 billion for green hydrogen, and $8.5 billion for electric vehicles, those allocations are much below the $84 billion the administration claims is necessary.

Post Views: 242