Energy & electricity dept says SA's just energy transition will cost over a trillion rand over 5 years

CAPE TOWN - The ministry of energy and electricity says the country’s just energy transition will come at a high cost of over a trillion rand in five years.

Officials from the ministry and the Just Energy Transition project management unit were briefing Parliament about the country’s investment plan for the just energy transition.

But members of the committee were not fully convinced about doing away with coal energy, which provides the majority of the country’s power.

South Africa’s just energy transition investment plan sets out the "scale of need" and the "early-stage investments" required for the country’s just transition (JT) to a low-carbon and climate-resilient economy.

This will put the country in line with the United Nations Framework Convention on climate change.

Sue Lund of the Just Energy Transition project management unit said the country would like to reduce its emissions to between 420 or 350 megatons of "carbon equivalent".

"The 420 megatons we could do on our own as a country. To do anything more, we really do need support from a very wide range of sources. We estimate that would cost R1.5 trillion over a five-year period until 2027."

Lund said the focus would be in three priority sectors, mainly electricity, new energy vehicles and green hydrogen.

She added that there were two programmes that were essential in undertaking the work in these priority sectors.

"Firstly, work around skills development and secondly, work around building municipal capacity around the just transition," said Lund.

She also said that at least 1,400 km of transmission lines needed to be built per year over five years, at a cost of R131 billion.