• South Africa unveils $127B energy transition plan under IRP 2025

• Clean energy to surpass coal, with 105,000 MW added by 2039

• Goal: end power cuts, boost growth to 3% by 2030
  

South Africa plans to invest 2.2 trillion rand (about $127.1 billion), or roughly 30% of its gross domestic product (GDP), into a comprehensive energy transition strategy. It was announced by Minister of Electricity and Energy Kgosientsho Ramokgopa at a press briefing on Sunday, Oct. 19, 2025.

The investment is central to the Integrated Resource Plan (IRP) 2025, which aims to resolve the country's persistent energy crisis and re-ignite economic growth. Ramokgopa stated that the IRP will stimulate the economy and create jobs, targeting 3% GDP growth by 2030.

The plan marks a major shift in the country's energy mix, where cleaner sources like hydropower, nuclear, wind, and solar are set to surpass coal for the first time in South Africa’s history. The IRP also includes significant emissions reduction targets: 160 million tonnes of CO₂ equivalent by 2030 and 142 million tonnes by 2035.

"There is no economy that grows if the lights are off. There are no industries that will decide to locate in South Africa if we can’t guarantee them available electricity that is of good quality and that is affordable," Ramokgopa said. "As long as there is no electricity, for as long as the lights are off, we are going to undermine the country’s potential to achieve its ambitions of growth and ensure that we can attract the necessary investments, and then that the people of this country can grow at levels that our potential dictates."

South Africa has faced a severe energy crisis for years, driven by the inability of the state power utility Eskom to meet demand due to aging coal-fired plants and insufficient new generation capacity. This situation contributed to the country's weak economic growth of 0.6% in 2024 and 0.8% in the second quarter of 2025.

The energy crisis has intensified recently, with power cuts—known locally as load shedding—lasting up to 12 hours per day. According to the Public Investment Corporation, these outages have cost the economy an estimated 20% of its capacity.

To mitigate the crisis, the government has implemented economic reforms, including opening electricity production to private sector participation. Under the IRP, the nation plans to add 105,000 megawatts of new generation capacity by 2039, equivalent to 2.5 times Eskom's current size.

Lydie Mobio