Johannesburg – South Africa is poised to become a continental leader in renewable energy, with forecasts from GlobalData, announced on December 19, predicting that renewables will dominate the nation’s cumulative power capacity mix by 2035. This ambitious transition isn’t merely a shift in energy sources; it represents a powerful surge of opportunity for investors, innovators, and a burgeoning green economy across the region. The news signals a decisive move towards a sustainable future, underpinned by strong government policy, exceptional solar and onshore wind resources, and a firm commitment to sustainability targets.
The projected dominance of renewables isn’t a sudden development, but rather the culmination of strategic planning and increasing investment. South Africa has long recognized the imperative of diversifying its energy sources, moving away from a historical reliance on coal. This commitment is now bearing fruit, with significant projects already underway and a clear roadmap for future expansion. The GlobalData forecast highlights the potential for substantial growth in both solar and onshore wind capacity, presenting a compelling investment case for companies specializing in renewable energy technologies, project development, and infrastructure. This isn’t just about generating electricity; it’s about building a resilient, future-proof energy system that can power South Africa’s economic growth for decades to come. The opportunity extends beyond large-scale utility projects, encompassing distributed generation, microgrids, and innovative energy storage solutions – all areas ripe for investment and innovation.
South Africa’s position as one of the highest-rated countries in Africa for happiness and satisfaction, as noted in recent reports, provides a stable and attractive environment for investment. This positive social climate, coupled with a relatively well-developed financial infrastructure, makes it an ideal location for renewable energy projects. The country’s existing energy sector, while undergoing transformation, provides a foundation of expertise and experience that can be leveraged to accelerate the transition. Furthermore, the government’s commitment to sustainability is not solely driven by environmental concerns; it’s also a strategic move to attract foreign investment, create jobs, and enhance the nation’s global competitiveness. The focus on renewables aligns with the growing global demand for clean energy and positions South Africa as a key player in the international energy market.
This renewable energy surge isn’t occurring in isolation. It’s deeply intertwined with the broader technological advancements sweeping across the African continent. The explosive growth in artificial intelligence, a significant business and economic story throughout 2025, is creating opportunities to optimize energy grids, predict demand, and improve the efficiency of renewable energy systems. AI-powered solutions can play a crucial role in managing the intermittency of renewable sources, ensuring a reliable and stable power supply. Moreover, the rise of tech hubs within South Africa, fueled by industries like wellness services, demonstrates a growing ecosystem of innovation and entrepreneurship. This vibrant tech scene can contribute to the development of cutting-edge renewable energy technologies and solutions tailored to the specific needs of the African market. The synergy between renewable energy and the broader tech ecosystem is a powerful force for economic transformation.
The implications of this transition extend far beyond the energy sector. A reliable and affordable supply of renewable energy is essential for driving economic growth across all industries. It will empower businesses to expand, create jobs, and compete in the global market. The development of renewable energy projects will also stimulate local economies, creating opportunities for skills development and entrepreneurship. The shift towards renewables is particularly significant in light of recent trends showing young Africans finding renewed hope in farming, as urban life becomes increasingly expensive. Affordable and reliable energy is critical for powering irrigation systems, processing agricultural products, and connecting rural communities to markets. This creates a virtuous cycle of economic development, where renewable energy supports agriculture, agriculture drives economic growth, and economic growth fuels further investment in renewable energy. The potential for job creation is substantial, spanning roles in project development, construction, operation, maintenance, and manufacturing of renewable energy components.
Looking ahead, the future for South Africa’s renewable energy sector is exceptionally bright. The GlobalData forecast to 2035 is not a ceiling, but rather a foundation for even greater ambition. Continued investment in research and development, coupled with supportive government policies, will unlock further innovation and drive down costs. The country’s strategic location and abundant renewable resources position it as a potential energy hub for the entire Southern African region. The individuals recognized as South African Newsmakers of 2025 are already shaping this future, and their leadership will be crucial in navigating the challenges and capitalizing on the opportunities that lie ahead. This isn’t simply about transitioning to a cleaner energy source; it’s about building a more prosperous, sustainable, and equitable future for all South Africans – and setting a powerful example for the rest of the continent. Investors who recognize the momentum and potential of this transformation will be well-positioned to reap significant rewards while contributing to a brighter future for Africa.
