EU’s energy funding does not, and will not, dictate SA’s energy mix, says Ramokgopa

Energy and electricity minister Kgosientsho Ramokgopa has told parliament that the $5bn (R88.6bn) funding package the EU announced for SA does not come with conditions that will restrict the use of any energy technology.

The minister replied in writing to a questionby EFF MP Carl Niehaus, who asked whether the financial package from the EU included conditions that restricted SA from developing new coal and nuclear power projects.

He also asked the minister what the department’s position was on the energy mix and whether the government had a concrete strategy for using the funds to enhance energy security, industrial capacity and economic development.

Ramokgopa said the financial support announced by the EU was part of SA’s broader Just Energy Transition (JET) Investment Plan, which is “a country-owned and country-led framework”. He said SA had its priorities in transitioning towards a low-carbon, climate-resilient economy.

“The specific financial contributions referenced, including grants, concessional loans and technical assistance instruments, do not contain conditions that explicitly prohibit or restrict the republic from pursuing new coal or nuclear power developments.”

The EU announced the package for SA in the spirit of supporting the country’s transition from fossil-fuel intensive power production to low-carbon energy sources. 

However, these kinds of arrangements have been construed as being prescriptive on the receiving countries when it comes to the type of energy they invest in.

Ramokgopa said SA retained full sovereign discretion over its energy policy choices and mix, as affirmed in the Integrated Resource Plan (IRP), which is under review and remains the central planning tool for energy investments.

“While the EU, like other development partners, may align its financial instruments with its internal climate policies, these do not translate into binding conditions on the republic’s policy space.”

He said SA’s energy policy remained firmly guided by the principles of security of supply, affordability, environmental sustainability and technological neutrality.

“Coal repurposing, clean coal technologies and nuclear energy, including new generation and life extension programmes, continue to be part of our planning mix as supported by national legislation and policy.”

He stressed that the government had adopted a structured, cross-cutting governance framework to oversee the implementation of the JET Investment Plan.

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