South African Renewable Energy Masterplan Policy Brief

The Institute for Economic Justice argues that current South African renewable energy procurement, primarily through the REIPPP, has led to privatisation and temporary employment. It critiques the initial SAREM research for lacking analysis on trade dynamics and public ownership. The brief recommends a 'Green New Deal' approach featuring import tariffs, state-backed cheap debt, a formal technology transfer system, and the establishment of a municipal-based solar PV recycling industry to ensure a 'Just Transition'.

• The Renewable Energy Independent Power Producer Programme (REI4P) has primarily generated temporary employment, with over 80% of the 57,236 direct job years created deriving from construction activities.
• Current industrial policy for renewable energy has failed due to market uncertainty, inadequate enforcement of local content requirements, and the absence of a coherent technology transfer strategy.
• The brief argues that the unbundling of ESKOM and the shift toward cost-reflective tariffs may increase electricity prices for consumers by passing through the costs of private infrastructure and intermittency management.
• China's success in solar PV manufacturing is attributed to targeted industrial policy, a supportive technology transfer ecosystem, and the provision of cheap debt to manufacturers at state bond rates.
• The SAREM background study is critiqued for focusing on 'task-based industrialisation' (assembly) rather than 'product-based industrialisation' (design and mass manufacture), which limits long-term industrial benefits.
• To achieve deep localisation, the brief recommends implementing import tariffs on strategic components, increasing local content requirements to 50-70%, and establishing a Technology Transfer System (TTS) coordinated by the DST, DTIC, and DHET.
• The brief proposes diversifying demand for the PV industry by incentivising green construction and developing a policy framework for Green Hydrogen to target export markets, particularly in the EU.
• Because solar PV module recycling is not economically viable without subsidies, the brief advocates for public ownership through the establishment of municipal recycling depots.

APA

Institute for Economic Justice (2021). South African Renewable Energy Masterplan Policy Brief. https://iej.org.za/wp-content/uploads/2026/02/IEJ-policy-brief-SAREM.pdf

Chicago

Institute for Economic Justice. South African Renewable Energy Masterplan Policy Brief. 2021. https://iej.org.za/wp-content/uploads/2026/02/IEJ-policy-brief-SAREM.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=South African Renewable Energy Masterplan Policy Brief |date=October 2021 |url=https://iej.org.za/wp-content/uploads/2026/02/IEJ-policy-brief-SAREM.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjustice2021south, author = {{Institute for Economic Justice}}, title = {{South African Renewable Energy Masterplan Policy Brief}}, institution = {Institute for Economic Justice}, year = {2021}, month = oct, url = {https://iej.org.za/wp-content/uploads/2026/02/IEJ-policy-brief-SAREM.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }