Solar panels are prominently placed in the foreground, while smoke rises from power plants in the background during a beautiful sunset, highlighting the contrast between energy sources.
Nearly a decade ago, South Africa made a commitment under the Paris Agreement, a landmark international treaty aimed at reducing global warming by limiting the rise in global temperatures to well below 1.5°C above pre-industrial levels. A key requirement of this treaty is drastically reducing carbon emissions by transitioning from fossil fuels to renewable energy sources.
This transition demands a complete overhaul of the economy, requiring trillions of Rands in investment to accelerate the deployment of renewable energy, expand the power grid, build necessary infrastructure, and invest in skills development. However, in light of South Africa’s stagnant economic growth and increasing debt-to-GDP ratio, the question arises: Can the country afford such a monumental shift?
The answer is simple: South Africa cannot afford not to.
Shifting from a fossil-fuel-based economy to one powered by renewable energy is not just an environmental obligation; it is a strategic move that will secure the nation’s future economic competitiveness. In the face of emerging carbon border taxes and the risk of losing critical trade partnerships—which account for 50% of South Africa’s export value, contribute 15% to GDP, and support over 1 million jobs—the need for a rapid transition is clear.
The solution lies in recalibrating South Africa’s economy to accelerate the adoption of renewable energy, embrace innovation, and bolster trade partnerships. This must be done while addressing the nation’s pressing challenges: inequality, unemployment, and poverty.
According to Karel Cornelissen, Founder and CEO of NOA Group, “Solutions such as renewable energy wheeling, which enables the private sector to generate electricity at scale, and deliver it to end-users via existing Eskom or municipal grids, are essential to achieving South Africa’s decarbonisation goals.”
NOA Group aggregates renewable energy from wind and solar sites in optimal locations across South Africa, providing medium and large-scale energy users with higher and more consistent volumes of renewable energy. This enables NOA’s clients to reduce their energy costs, cut their carbon footprint, comply with current and future regulations, and become more attractive to investors and customers.
“As we help South Africa become more appealing to investment and strengthen trade partnerships, we also unlock new opportunities for skill development and the growth of green industries,” Karel adds.
The renewable energy transition is about more than securing a sustainable future—it’s about ensuring South Africa remains competitive globally, now and in the future.