Funded by: Federal Ministry for the Environment, Nature Conservation and Nuclear Safety
Mandatary: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
South Africa’s electricity supply sector faces multiple challenges. The state-owned vertically integrated utility company Eskom plays a dominant role in the sector, but exhibits high indebtedness due to regulated tariffs that do not allow cost-recovery. To break this reform impasse, the creation of a Just Transition Transaction (JTT) has been announced at the highest political level in September 2019. The JTT refers to the creation of a financing vehicle of several million US dollar with the objective to address Eskom‘s long-term financing needs and at the same time fund South Africa’s just energy transition. The overall objective of the project was to conduct a high-level assessment of the potential financing needs for the implementation of the proposed Just Energy Transition until 2050. The team of Berlin Economics has calculated the total financing needs for the deployment of renewable energy until 2050 based on existing government plans (incl. decommissioning of old coal-fired plants) and international technology cost and lifetime projects.