APO Group Africa Newsroom Press release Balancing Energy Security and Decarbonization : African Energy Week AEW 2025 to Address South Africa Power Crisis

The Energy Landscape in South Africa

South Africa’s energy landscape is dominated by coal, which accounts for approximately 80% of the country’s electricity generation. This heavy reliance on coal has significant implications for the country’s energy security and its ability to transition to a low-carbon economy. • The country’s coal-fired power plants are aging and in need of significant upgrades or replacement. • The South African government has set a target to reduce greenhouse gas emissions by 42% by 2030, which will require a significant shift away from coal. • The country’s energy mix is also heavily reliant on imported fuels, which can be volatile and subject to price fluctuations.

Constrained industrial productivity, making it difficult for businesses to operate efficiently.

Discouraged investment in the energy sector, as investors are deterred by the uncertainty and volatility of the energy market.

Limited GDP growth, as the country’s energy sector is a significant contributor to its economy.The Need for a Low-Carbon Transition

The State of African Energy 2025 Outlook Report highlights the need for South Africa and other mature markets across the continent to balance energy security with decarbonization. This requires a significant shift away from coal and towards cleaner, more sustainable energy sources.

The continent is home to a diverse range of renewable energy sources, including solar, wind, and hydroelectric power.