The Portfolio Committee on Mineral Resources and Energy was briefed on the Just Energy Transition (JET) investment plan by the Minister in the Presidency, Mr Mondli Gungubele. The committee thereafter resolved that, as the plan is a matter of national importance, it requires more time for deliberation and consultation.
The committee then undertook to hold a follow-up meeting in the first quarter of 2023. The committee also learnt that the JET investment plan will require total investment of R1.5 trillion over a five-year period to cover three priority sectors, namely electricity, new energy vehicles (NEV) and green hydrogen.
However, the government has projected a funding gap of R700 billion. Over a five-year period, the electricity sector alone will require an investment of R1 030 billion to cover infrastructure, just-transition measures in Mpumalanga, and sector-wide as well as municipal support measures.
The NEV sector will require R128.1 billion in order to transition the automotive sector value chain to protect sector employment and promote sustainable manufacturing. The green hydrogen sector will require R319 billion to position South Africa as a leading exporter and for use locally in hard-to-abate sectors, including the provision for port infrastructure.
The committee was concerned about fundraising, consultation and abrupt decommissioning of coal-fired plants. The committee Chairperson, Mr Sahlulele Luzipo, said that the committee may consider inviting the National Treasury to hear how the investment shortfall will be covered.
Distributed by APO Group on behalf of Republic of South Africa: The Parliament.