South Africa woos Chinese investors for renewable energy drive

Below, we look at the sales pitch delivered to China at the South Africa-China electricity and energy investment conference earlier this month, and the immediate results secured from it.

The conference was held less than a year since the IRP 2025 was published in South Africa’s official gazette and reflects South Africa’s Department of Electricity and Energy’s pursuit of strategic partnerships and investment as it moves from planning the reforms to implementing them. The participation of energy minister Dr Kgosientsho Ramokgopa at the conference is indicative of the government’s shift in focus.

What is the integrated resource plan?

The IRP 2025 sets out South Africa’s plan to meet electricity demand sustainably and cost-effectively, while improving energy security and supporting the transition to lower-carbon energy sources. It is anchored by a projected R2.23 trillion ($140 billion) investment programme that will influence the country’s generation mix and support the development of approximately 14,500 km of new transmission infrastructure. 

The plan also forms part of a broader energy transition under which South Africa aims to retire 8GW of coal capacity while adding 6GW of gas and 15GW of renewable energy by 2030. One of its main objectives is to expand renewable energy capacity from 17GW to more than 45GW by 2030, requiring approximately 14,494 km of new transmission lines to be installed by 2034 to accommodate increased generation capacity and rising electricity demand. 

Renewables opportunity across Africa 

Sub-Saharan Africa is expected to increase installed solar, wind and battery capacity from 13GW in 2025 to 29GW by 2030, reflecting growing demand for cleaner and more sustainable energy solutions. This momentum is already evident in record growth in solar exports during the first quarter of 2026, driven by demand from the South African, Nigerian and Kenyan markets. 

According to a BloombergNEF study, South Africa had 67GW of installed energy capacity in 2025, with coal accounting for more than 65% of that capacity. The same study indicates that Sub-Saharan Africa accounted for 10% of China’s solar exports. Growing demand for renewable energy is being driven, in part, by geopolitical disruption, including the US-Iran conflict, unreliable grids and rising energy regulator tariffs. 

China partnership prospects 

At the Beijing conference, Ramokgopa highlighted South Africa’s renewable energy resources and their potential to support low-cost generation at scale. He also emphasised the need to accelerate public-private investment, noting China’s strategic role in global manufacturing, including its production of one-third of the world’s manufactured goods, 80% of solar PV modules, 75% of lithium-ion batteries and nearly 60% of electric vehicles, as well as its leadership in wind technology. 

Ramokgopa also pointed to China’s speed, agility and cost advantages in delivering renewable energy projects. He noted that Chinese original equipment manufacturers (OEMs) are facing overcapacity and seeking new markets in which to deploy that capacity. This presents an opportunity for South Africa to position itself as a strategic partner, support domestic industrialisation and draw on local skills and labour, rather than rely solely on imported expertise. 

Reflecting on the outcomes of the conference, the minister confirmed that three Chinese OEMs have confirmed they would be building transformer, wire and pylon manufacturing facilities in South Africa as part of the rollout of transmission infrastructure required to support new energy generation envisioned in the IRP. This is a major indication of the fruits of the conference and one of the many steps to be taken to strengthen alliances between Chinese entities and the South African market.  South Africa’s access to liquidity and support packages from the Development Bank of Southern Africa, the Industrial Development Corporation and commercial banks also strengthen the country’s appeal as a destination for Chinese investment partnerships. 

Outcomes from the conference 

South Africa’s pitch to Chinese investors was structured around multiple entry points. Eskom Group chief executive Dan Marokane said investors could expect policy and regulatory framework certainty, a diversified and balanced energy mix, a sequenced and guaranteed procurement pipeline for generation, storage and transmission, and a local manufacturing opportunity.

The National Transmission Company South Africa highlighted a “strategic participation” opportunity for Chinese partners that extends beyond equipment supply and spans the value chain, including equity and project investment, EPC and project delivery, equipment and technology supply with localisation, manufacturing and localisation, financing partnerships and long-term partnerships. 

‘Special Economic Zones’ (SEZs) form part of the incentive architecture. Trade, industry and competition minister Parks Tau highlighted the competitive advantages of South Africa’s SEZs, including customs control, proximity to ports and streamlined compliance. Cross-border SEZs are also being pursued, alongside a focus on scalable blended finance.  

The IRP 2025 identifies green hydrogen and ‘power-to-X’ as areas of comparative advantage. Green hydrogen is emerging as a tool to decarbonise sectors that cannot be directly electrified, and South Africa’s energy policy identifies it as an essential component of the country’s transition strategy towards a low-carbon economy. South Africa is also positioned to pursue green hydrogen and power-to-X opportunities arising from its resources and geopolitical stability. 

Legislation has also advanced in support of South Africa’s ambitions to diversify its green energy portfolio. Recently, Ramokgopa introduced the long‑awaited Gas Bill to the National Assembly. That Bill is set to establish a modernised legislative framework that reflects advancements in gas transportation and storage. The Bill arrives ahead of developments within South Africa’s ‘gas‑to‑power’ programme (GtP), which is intended to bridge the gap between coal‑fired power generation and non‑dispatchable renewable energy, as well as strengthen the support for the use of green hydrogen as a fuel source. 

Two significant agreements were signed at the conference. Sasol entered into an agreement with Chinese green technology and renewable energy company Envision to undertake engineering design work for its e-methanol project at Sasolburg. Envision has been commissioned to design a green hydrogen system at Sasol’s Sasolburg operation, integrating renewable energy, battery storage and electrolyser technology to produce green hydrogen with the potential to support e-methanol production. 

Separately, the National Radioactive Waste Disposal Institute signed a memorandum of understanding (MoU) with China National Nuclear Corporation, China National Nuclear Corporation Overseas and China Energy Conservation and Environmental Protection Group on radioactive waste management. The MoU focuses on the disposal of low-level radioactive waste and draws on Chinese research and development relating to underground deep geological repository facilities. The agreement comes as South Africa has emphasised that nuclear waste management is critical to its broader nuclear programme. 

Many of these deals and partnerships had been under discussion for several months before the delegation travelled to China, underscoring the government’s focus on implementing the IRP 2025. Ramokgopa confirmed that, before the mission, around six OEMs had already expressed interest in investing in South Africa, with some companies now making firm commitments. Further details on these commitments are expected to follow. 

Our view

The conference signals South Africa’s move from energy planning to implementation under the IRP 2025. By connecting generation, transmission, localisation and financing opportunities, the government aims to ease current capacity constraints while building a more secure, diversified and lower-carbon electricity system that supports security of supply and its long-term commitment to a net zero electricity sector by 2050. 

The commitments announced, including planned local manufacturing facilities, legislative reform, and agreements in green hydrogen and nuclear waste management, suggest that the South Africa-China partnership may be an important route for mobilising, and attracting investment and industrial capability. The extent of its impact will depend on whether these commitments translate into delivery across the procurement pipeline and the transmission infrastructure needed to support new generation capacity. 

Co-authored By Katlego Mbonambi of Pinsent Masons.