According to an investment plan tabled on Friday, 90% of the money would be used to close coal-fired power facilities, along with building up renewable energy production, fortifying the transmission infrastructure, and updating the electricity distribution system. 

The remaining funds will be used to advance the green hydrogen and electric vehicle sectors.

The funding, pledged by the US, UK, the European Union, Germany and France, was unveiled at last year’s United Nations-led climate talks in Glasgow, Scotland. The investment plan comes the week before world leaders gather at the follow-up summit in Egypt. The so-called Just Energy Transition Partnership is expected to serve as a prototype for similar deals with coal-dependent, developing nations such as Vietnam, Indonesia and India.

South Africa is the world’s 13th-biggest source of greenhouse gases, with 45% of its annual 452 million tons of emissions coming from electricity generation. The package is key to closing many of the nation’s old and malfunctioning coal-fired plants and replacing them with renewable sources.

The investment plan envisages $7.6 billion being invested in electricity infrastructure, $700 million in developing green-hydrogen projects and $200 million in an electric-vehicle industry over the next five years.

Those allocations are well below the $84 billion the government says is required - with $47.2 billion needed for the electricity sector, $21.2 billion for green hydrogen and $8.5 billion for electric vehicles.

News24