Navigating the just energy transition: Insights from South Africa and beyond

This blog explores what a just energy transition entails, and how the differences and similarities between regions can be leveraged to accelerate progress in the energy transition process.

Renewables in South Africa

South Africa’s abundant natural resources make renewable energy an advantageous place to start. With ample sunlight throughout the year and coastal regions along the Western Cape, solar and wind power are both viable options.

While the wind energy potential in South Africa is being put to use, large scale utilization of wind energy is often facing the issue of grid infrastructure1.  With windfarm location restrictions, most sites are in remote areas and have challenges connecting to the grid. And of course, in the absence of reliable grid infrastructure, most of the power generated will be lost.

Solar energy also holds enormous resource potential in the country, with billions invested in solar plants and ideal sunny conditions in many areas of the country, but tapping into this potential is not without its challenges. Access to financing, upfront costs, and grid infrastructure present significant obstacles with widespread financial support needed, begging the question of how private organizations can align themselves with a just transition.

Private sector contributions

In 2015, South Africa was the only country to mention a just transition in its National Determined Contribution (NDC)2. Together with the high-level National Development Plan3,  these policies and plans provide a strong foundation for social dialogue and support to establish more tangible measures. Conducting vulnerability assessments by sector and developing sector-specific job resilience plans also strengthens this approach.

It’s important to note that the Just Energy Transition Investment Plan (JET IP) outlines $98 billion in financial requirements over the next five years, with funding coming from both the public and private sectors4. While large-scale government-led renewable initiatives have faced challenges, the private sector has stepped up to play a vital role in shaping the country’s energy future5, a revolution sparked by smaller, self-sufficient energy installations. By diversifying energy sources, the private sector has been demonstrating innovation, imagination, and adaptability in true South African style.

Diversifying energy solutions

Green hydrogen, produced by the electrolysis of water using renewable energy sources, emits no greenhouse gases during combustion, making it a clean alternative to fossil fuels. Hydrogen fuel cells can be used to power electric vehicles, providing longer ranges and faster refuelling times compared to batteries, and can also be used in industrial processes such as steel production and chemical manufacturing. While challenges remain in terms of production scalability, storage, and distribution infrastructure, ammonia, with its high energy density, can be stored and transported efficiently. In maritime shipping, ammonia-powered engines are being explored as an alternative to marine fuels, though safety concerns and infrastructure development need to be addresses.

Within the mix of renewable energy, biomass energy stands out as having enormous potential. Predominantly used for heat production, biomass serves as a vital energy source for cooking, heating, and industrial processes. It can produce methanol, which can be further converted to sustainable aviation fuel (SAF).

While these renewable fuels undoubtably reduce greenhouse gas emissions, diversify energy sources, and promote cleaner alternatives across various sectors, their widespread adoption requires investment in infrastructure, policy support, and technological advancements that are not necessarily available worldwide.

South Africa, like many other regions, grapples with the challenge of transition from traditional, fossil-fuel dependent energy systems to cleaner alternatives. And the crux of this challenge lies not just with the adoption of sustainable energy, but with equitable access and fair economic growth. The solution must come from policy and regulation, community engagement, regional incentives, and adequate upfront investment.

The role of relationships in driving change

The imperative to move away from fossil fuels is a common thread binding energy transitions across the globe. Regardless of location, the consensus is clear: cleaner, more sustainable energy sources are the future, and collaboration, innovation, and adaptability are at the heart of this transition.

Building strong partnerships with clients, understanding their challenges, and co-creating solutions are essential elements in navigating the complexities of the transition. While technical expertise is crucial, it’s the ability to forge meaningful connections and navigate cultural landscapes that will ultimately lead to a just transition and set successful organizations and projects apart.

As South Africa and other regions continue their journey toward a sustainable energy future, collaboration and knowledge sharing will be key. By embracing diversity, fostering innovation, and prioritizing sustainability, stakeholders can collectively steer the global energy transition towards a brighter, more sustainable future.

Connect with Mimi to find out more about how Hatch is leveraging the differences and similarities between regions to accelerate progress in the just energy transition.