EU energy funds do not, and will not, dictate SA's energy mix: Ramokgopa

The Herald

5 hours ago

Minister of energy and electricity Kgosientsho Ramokgopa has told parliament that the $5bn (R88.6bn) funding package the EU announced for South Africa does not come with conditions that will restrict the use of any energy technology.
The minister said this in a written reply to a question from EFF MP Carl Niehaus, who asked whether the financial package from the EU includes conditions that restrict South Africa from developing new coal and nuclear power projects.
He also asked the minister what the department's position was regarding the energy mix and whether the government had a concrete strategy for using the funds to enhance energy security, industrial capacity and economic development.
Ramokgopa said the financial support announced by the EU was part of South Africa's broader Just Energy Transition (JET) Investment Plan, which is 'a country-owned and country-led framework'. He said South Africa had its priorities in transitioning towards a low-carbon, climate-resilient economy.
'The specific financial contributions referenced, including grants, concessional loans and technical assistance instruments, do not contain conditions that explicitly prohibit or restrict the republic from pursuing new coal or nuclear power developments.'
The EU announced the package for South Africa in the spirit of supporting the country's transition from fossil-fuel intensive power production to low-carbon energy sources.
However, these kinds of arrangements have been construed as being prescriptive on the receiving countries when it comes to the type of energy they invest in.
Ramokgopa said South Africa retains full sovereign discretion over its energy policy choices and mix, as affirmed in the Integrated Resource Plan (IRP), which is under review and remains the central planning tool for energy investments.
'While the EU, like other development partners, may align its financial instruments with its internal climate policies, these do not translate into binding conditions on the republic's policy space.'
He said South Africa's energy policy remains firmly guided by the principles of security of supply, affordability, environmental sustainability and technological neutrality.
'Coal repurposing, clean coal technologies and nuclear energy, including new generation and life extension programmes, continue to be part of our planning mix as supported by national legislation and policy.'
He stressed that the government has adopted a structured, cross-cutting governance framework to oversee the implementation of the JET Investment Plan.
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