A New Frontier? German-South African Energy Cooperation in a Rapidly Evolving Market

The South African-German Energy Partnership hosted a fruitful discussion on the energy market developments in South Africa and opportunities for South African-German cooperation during the Enlit Africa Conference in Cape Town on 22 May 2024. German Consul General Tanja Werheit and Deputy Director General Yunus Hoosen from the Department of Trade, Industry and Competition provided inputs to the over 40 industry representatives.  

A discussion with representatives from government and business, including Annelise van der Merwe (South African Department of Trade & Industry), Rethabile Melamu (South African PV Industry Association), Morongoa Ramaboa (South African Wind Energy Association), Sabine Dall’Omo (Siemens) and Jens Hauser (German Southern African Chamber of Commerce and Industry) then delved deeper into recent developments and opportunities in the South African energy market. 

Recent policy changes in South Africa have made a marked impact. Within two years, South Africa has become the 10th largest PV market in the world, and 64 GW of renewable energy projects are in the pipeline. One of the key takeaways from the session is that reliable, clean and cheap electricity is an important driver of future economic growth, be it for energy intensive businesses like data centres, or the decarbonization of industrial production. South Africa can play to its strengths, by using scarce public resources towards a conducive investment environment instead of overly expensive subsidy race.