South Africa unveils an $80 billion (R1.5 trillion) investment plan for a five-year transition away from fossil fuels. This follows pledges of loans from several Western countries in the run-up to the COP28 conference - the completion of the plan is crucial for unlocking the $8.8 billion loan under the Just Energy Transition Partnership with several Western countries.

The plan, overseen by President Cyril Ramaphosa's office, targets six areas: electricity, new-energy vehicles, green hydrogen, skills development, municipal implementation capacity, and economic development in the coal-dependent province of Mpumalanga.

Notable investments include ArcelorMittal SA's steel project using green hydrogen and Hive Energy's green ammonia facility, though will ArcelorMittal pulling out of the country, the status of this project is unknown. Hydrogen fuel cell projects are heavily subsidised by Western finance programs despite their inefficiency.

Initial steps involve creating a project registry and establishing a funding platform in 2024. The plan will predominantly focus on solar and wind power, with no provisions for nuclear energy, whose development has previously been blocked by foreign-funded NGOs. The Zuma-era nuclear plant would have generated a greater amount of electricity for a similar price, albeit more reliably.

Private sector involvement is expected to contribute $300 billion to generation projects, with an additional $250 billion needed for grid strengthening, to accommodate the severe strain which fluctuating energy sources like solar and wind impose.

Incentives of $71 billion are proposed for electric cars and fuel cell-powered vehicles, whose use is on the increase as new companies install solar-powered electric refuelling stations across the country.

The transition is expected to impact coal-dependent communities, with potential job losses in Mpumalanga requiring alternative employment measures.

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