Leaders mark progress on policy reforms, investment for SA鈥檚 JETP
IPG pledges $10B to advance South Africa鈥檚 Just Energy Transition, driving reforms, renewables, and major transmission infrastructure expansion.
The International Partners Group (IPG) 鈥� made up of the United Kingdom (Chair), Denmark, the European Union, France, Germany and the Netherlands 鈥� and the JET Project Management Unit have released their joint 12鈥憁onth update on the Just Energy Transition Partnership (JETP). The update was published at the end of 2025 and shows significant progress in South Africa鈥檚 clean energy transition.
IPG members have pledged $10 billion, with additional bilateral contributions bringing the total to $12.4 billion. When combined with multilateral development bank (MDB) commitments, the overall package reaches $13.7 billion.
Although the United States withdrew from the partnership in February 2025, all remaining partners have reaffirmed their strong support for South Africa鈥檚 just and inclusive energy transition.
Key policy developments听and infrastructure expansion听
Progress on energy sector reforms, renewable energy investment, private sector participation in transmission, and improvements in distribution infrastructure,听demonstrate听that South Africa鈥檚 Just听Energy听Transition (JET)听continues on听a positive trajectory.听听
JETPs represent a pioneering model of country-led clean energy transition support - aligning domestic policy with international and private finance -听which听is听gaining momentum globally.听听
The听IPG welcome听key policy and market developments over the past year,听with regulatory frameworks and capacity-building well underway for the launch of the South African Wholesale Electricity Market (SAWEM) scheduled for April 2026.听听
NERSA has granted a Market Operator licence to the National Transmission Company South Africa (NTCSA), and听the process for construction of over听14,000 km of transmission lines over the next decade听is underway, supported by private sector-led Independent Transmission Projects (ITPs) and a World Bank-backed Credit Guarantee Vehicle to de-risk investments.听听
South Africa鈥檚 G20 Presidency amplified its commitment to decarbonisation while prioritising energy access, and the JET portfolios are now firmly embedded within South Africa鈥檚 governance structures,听enabling sustained momentum across the priority areas听at all levels.听听
IPG projects听contribute to听progress in key areas听听
Significant investments have been made over the year. For example, Germany (KfW) have provided听a landmark 鈧�150m loan听to the City of Cape Town听to bolster the city鈥檚 grid;听the UK (BII and PIDG听GuarantCo) have provided听$100m of听innovative guarantee financing to听an听energy听trading company听to unlock new capacity; the EU (EIB) have听signed听a 鈧�350 million听loan听with听Transnet and France听recently announced a听further听鈧�300m听loan to support the SOE鈥檚 decarbonisation plans.
Technical听assistance听to support South Africa to implement the SAWEM is ongoing, for example Denmark听are听building capacity on regulation, power market development, energy听planning听and procurement models in the key institutions.听
Delivering a Just transition听remains听of paramount importance.听Successes this year include听a strong focus on supporting SMMEs,听including attracting successful investment,听alongside听skills development听programmes听both听within the renewable energy value chain听and more broadly.听听
Notably, the construction of the听Grootvlei听Horticulture Expertise Facility, funded by the Netherlands, is听now听well underway at the site of the听Grootvlei听power station. The goal is to听create alternative employment opportunities听through sustainable climate smart and water efficient agriculture, specifically horticulture, developing skilled workers,听farm managers, and agricultural entrepreneurs in the region.听
Looking Ahead to 2026听
The JETP has had a tangible impact in creating an enabling environment for transition, mobilising finance, and sustaining political momentum for South Africa鈥檚 just energy transition.听听
In 2026, partners will听maintain听focus on effective delivery while reflecting on lessons learned to inform future JETP countries and next-generation platforms.听听
The JET PMU will听initiate听a comprehensive evaluation of implementation in collaboration with IPG members and stakeholders. Support from the IPG听remains听strong, and all parties reaffirm their commitment to the听objectives听set out in the JETP Political Declaration (2021), Investment Plan (2022), and Implementation Plan (2023).听
In today鈥檚 uncertain geopolitical context, sustaining a just energy transition - including its social dimensions -听remains听vital.听
Further information
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