South Africa’s Clean Energy Transition Needs More Than Sun, Wind and Money

South Africa's clean energy transition is usually described as a battle against coal, grid shortages and investment gaps, but a new study suggests the deeper problem may be something less visible and more difficult to fix: the institutions meant to deliver the transition are not yet aligned enough to move at the speed the country needs.

The research, published in Energies by Pheladi Molepo, Tebello Ntsiki Don Mathaba and Khaled Aboalez of the University of Johannesburg, examines the barriers slowing the integration of renewable energy in South Africa. It shifts the conversation away from a narrow focus on technology and finance.

South Africa has strong solar and wind resources, policy commitments to cut emissions and reach net zero by 2050. Yet by the end of 2024, more than 80 percent of electricity still came from Eskom's coal-fired power plants, while renewables accounted for about 12 percent of total generation. The country's renewable energy transition is not being held back by a lack of natural potential, but by weak coordination, unstable market signals, institutional misalignment and gaps in public trust.

Alignment Is The Biggest Barrier

The study identifies a lack of agreement among key institutions as the most prominent barrier to renewable energy integration in South Africa. Energy transitions depend on institutions moving in sync: government departments, regulators, the transmission company, Eskom, independent power producers, financiers, communities and local authorities. When those actors are not aligned, renewable energy projects become harder to approve, finance, connect and deliver.

The study shows that one renewable energy barrier can amplify another. Institutional disagreement can weaken coordination, resulting in delayed grid connection. Delays can raise market uncertainty, which, in turn, can reduce investor confidence and make financing more difficult.

South Africa does not only need more renewable energy targets - it needs stronger delivery systems. The clean energy transition must be governed as a connected system rather than a set of separate institutional mandates.

The Grid Crisis Is Also a Governance Crisis

Grid capacity remains one of the most urgent constraints facing renewable energy developers in South Africa. Some of the country's best wind and solar resources are located in areas where grid availability is limited, thereby stalling projects and complicated procurement outcomes. But the study warns against viewing the grid challenge as purely technical. Transmission infrastructure matters, but so do the rules and institutions that decide how grid capacity is planned, allocated and coordinated with renewable energy procurement.

If grid constraints are treated only as an infrastructure deficit, the solution is mainly capital expenditure. If they are also understood as a governance challenge, then the solution must include better planning, clearer allocation processes, stronger coordination between public and private actors, and more predictable policy implementation.

The research identifies weak coordination between public and private institutions as the third most prominent barrier. This affects not only grid access, but also knowledge-sharing, skills development, innovation and the relationship between industry, government and research institutions. For South Africa, this is a high-stakes issue. The country cannot unlock renewable energy at scale if developers, regulators, grid planners and policymakers are operating with different assumptions, timelines and incentives.

Investors Need Predictability, Not Just Opportunity

South Africa's renewable energy market has strong investment potential, but the study finds that market uncertainty is one of the most influential root-cause barriers. It includes exposure to global market volatility, currency instability, imported equipment costs and uncertainty in procurement and policy implementation. Because renewable energy projects require large upfront investment and long development timelines, uncertainty can quickly translate into higher risk premiums, delayed decisions or reduced participation.

The finding is particularly relevant for development finance institutions, private investors and policymakers. Renewable energy costs have fallen globally, but cheaper technology does not automatically produce faster deployment. Investors still need credible institutions, stable procurement rules, transparent regulation and confidence that projects can reach financial close and connect to the grid.

The study identifies enforcement of regulatory frameworks and the use of independent reviewers as one of the highest-priority mitigation strategies. That points to the importance of credibility in South Africa's procurement system. The Renewable Energy Independent Power Producer Procurement Programme has been central to the country's clean energy progress, but its long-term effectiveness depends on trust in the fairness, transparency and consistency of the process. In view of this, South Africa's clean energy challenge is also an investment-climate challenge. The country does not only need to attract capital, but also needs to reduce the uncertainty that makes capital more cautious.

Communities Are Not a Footnote to the Transition

Strengthening local community engagement ranks as the top mitigation strategy for overcoming renewable energy barriers in South Africa. In policy debates, community engagement is often treated as a social safeguard or a late-stage requirement. The study suggests it should be seen as central to project success.

Many renewable energy projects are located in rural areas, often on privately owned agricultural land or land involving communal interests. Without early engagement, local consent and a clear understanding of benefits, projects can face resistance, delays or reputational risk. Community engagement is therefore not simply about communication. It is about legitimacy. Communities need to understand what renewable energy projects will mean for jobs, land use, local infrastructure, skills development, benefit-sharing and long-term participation.

South Africa's move away from coal is not only an energy-sector reform. It is a social and economic transformation that will affect workers, households, local economies and regions that have long depended on the existing energy system.

The study also ranks public awareness-raising among the top mitigation strategies. People are more likely to support the energy transition when they understand its benefits, risks and trade-offs. NGOs, local governments and development agencies can help design engagement models that are credible, inclusive and locally grounded.

The study acknowledges some limits including that its expert panel was small and weighted toward private-sector respondents, which means public-sector and community perspectives need further investigation. However, its core insight is valuable for South Africa and other developing economies: renewable energy transitions are not only built through technology, but through governance.

The next phase of clean energy deployment in South Africa must focus not only on megawatts, but on coordination, credibility and trust. The country's renewable energy transition is not waiting for the sun to shine or the wind to blow, but for the system around them to work.