Technology for Green Growth and Industrialisation

The paper provides a comparative analysis of green industrial policies in Brazil and South Africa, focusing on solar photovoltaic (PV) and onshore wind energy. It argues that while market-based mechanisms like auctions attract investment, state-led industrial policies—including localisation requirements and concessional finance—are essential for domestic technological upgrading and job creation. Brazil is highlighted for its relative success in building a domestic wind turbine supply chain through the BNDES and PROINFA, whereas South Africa's progress via the REIPPPP has been hindered by institutional resistance from the state utility Eskom and grid infrastructure bottlenecks. The author concludes that a just transition requires aligning energy procurement with long-term industrial strategies, investing in grid modernization, and leveraging multilateral platforms like BRICS and the G20 to facilitate technology transfer.

• Brazil successfully developed a domestic wind energy supply chain by combining reverse auctions with BNDES's subsidised loans, which were conditional on minimum local content thresholds.
• Brazil's solar PV sector has lagged behind wind energy due to high capital costs, a lack of local production capacity, and strong price competition from Asian producers.
• South Africa's Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) attracted over ZAR 27 200 billion in private investment and procured over 6 200MW of energy, but was stalled by political and institutional resistance from Eskom.
• Outdated transmission infrastructure in South Africa is a critical bottleneck, with Eskom noting that major expansions are needed to unlock over 30GW of constrained renewables, particularly in the Northern and Eastern Cape.
• The expansion of BRICS to include hydrocarbon-dependent nations like Iran and the UAE may dilute the bloc's unified commitment to decarbonisation and hinder cross-border technology partnerships.
• A fundamental difference in the political economy of transition is that while South Africa faces resistance from a powerful coal lobby, Brazil's primary ecological obstacle is the industrial agribusiness sector driving deforestation.

APA

Muthayan, N. (2025). Technology for Green Growth and Industrialisation. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2025/11/CNRP_SABTT-Working-paper-1_Muthayan_Technology-for-green-growth-1.pdf

Chicago

Muthayan, Nerissa. Technology for Green Growth and Industrialisation. South African Institute of International Affairs, 2025. https://saiia.org.za/wp-content/uploads/2025/11/CNRP_SABTT-Working-paper-1_Muthayan_Technology-for-green-growth-1.pdf.

Wikipedia

{{cite report |last1=Muthayan |first1=Nerissa |title=Technology for Green Growth and Industrialisation |publisher=South African Institute of International Affairs |date=2025 |url=https://saiia.org.za/wp-content/uploads/2025/11/CNRP_SABTT-Working-paper-1_Muthayan_Technology-for-green-growth-1.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{muthayan2025technology, author = {Muthayan, Nerissa}, title = {{Technology for Green Growth and Industrialisation}}, institution = {South African Institute of International Affairs}, year = {2025}, url = {https://saiia.org.za/wp-content/uploads/2025/11/CNRP_SABTT-Working-paper-1_Muthayan_Technology-for-green-growth-1.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }