About R1.5 trillion is required in investments in South Africa’s Just Energy Transition Investment Plan (JETIP) to a low-carbon and climate-resilient economy with international pledges having increased to $11.7 billion (R214.5bn) from the initial $8.5bn pledged by the International Partner Group (IPG) in 2021, according to the second quarter publication of the Presidency’s JET Register.
The JET Grants Register records and monitors progress of projects which contribute to implementation of the Just Energy Transition Investment Plan (JET IP) and is the first stage of developing a full JET Projects’ Register to record all projects financed under the auspices of the JET IP and to showcase the JET projects pipeline.
“The JET Grants Register provides transparency and accountability on how JET grant funds are being used, providing descriptions of financed activities, the amounts and sources of grants, and the implementing entities,” said Rudi Dicks, head of the project management office in the Presidency.
While $821 million has been pledged as JET grants, $613m of this funding is reflected in the current JET Grants Register being the sum which has been allocated to JET projects to date. “As further allocations are made by the donors from the remaining pledged grant funds, these will be included in the quarterly updates to the JET Grants Register,” Dicks said.
Dicks said the bulk of grant funding ($657m) has been provided by the IPG, and the balance by non-IPG partners who have chosen to join the JET Grants Register (Canada, Switzerland and Spain).
Germany has pledged $292m; the EU $125m; the US $62m; Netherlands $61m; Climate Investment Funds $50m; the UK $42m; Switzerland $39m; Denmark $21m; France $4m; and Canada $1m.
Of the allocated grant amounts $275m is allocated to technical assistance; $161m is earmarked for capacity development; $98m is for infrastructure; and $66m is going to community development. Research has been allocated $17m; and $72m is being used for project preparation.
“It should be noted that other organisations, including philanthropies and private-sector donors are contributing to the Just Energy Transition but are not yet included in the JET Grants Register.
It is anticipated that these contributions can be recorded in the JET Grants Register in due course,” Dicks said. The JET Implementation Plan 2023 to 2027 approved by the Cabinet in November, 2023 sets out a roadmap for JET implementation across six portfolios: electricity; Mpumalanga; municipalities; skills; new-energy vehicles; and green hydrogen.
In his State of the Nation Address (Sona) earlier this year, President Cyril Ramaphosa said if properly managed, the energy transition would make electricity cheaper and more dependable, and improve the global competitiveness of local industry.
He said investments in electric vehicles and hydrogen will equip South Africa to meet the global clean-energy future.
“We will be able to expand our mining industry in strategic minerals that are crucial for clean energy like platinum, vanadium, cobalt, copper, manganese and lithium. We also have a unique opportunity in green hydrogen given our world-class solar and wind resources, and local technology and expertise,” the president said.
According to the register, some already extended grants include technical assistance towards the Energy Sector Management Assistance Programme that supports the decommissioning of coal-fired power plants.
Funding of the technical grants has also been allocated via the UK PACT Skill-share, which aims to support the City of Cape Town with the integration of small-scale embedded generation into their grids including support for design standard of networks, embedded generation impact studies, and assistance on financing mechanisms, and funding models.
Infrastructure grants include funding for the Conduit Hydro-power Project aimed at integrating turbines within cities’ water pipes that both reduce water pressure and generate electricity to reduce the strain on the cities’ water infrastructure and provide power for cities while relieving pressure from cities’ constrained budgets.
Other projects include the implementation of local economic development strategies and plans, including support for JET through economic diversification in Mbombela and Steve Tshwete municipalities in Mpumalanga.
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