On 27 March 2025, the South African Renewable Energy Masterplan (SAREM) was approved by the South African Cabinet. SAREM is a comprehensive and strategic initiative aimed at transforming South Africa’s renewable energy and storage value chains by 2030.

SAREM demonstrates its commitment to the National Development Plan by promoting a low-carbon, resource-efficient, and pro-employment development pathway.  SAREM’s overarching vision is to “achieve a well-developed renewable energy and storage value chain that enables a transformed industry and inclusive industrialisation” and is anchored on 6 “key objectives” which underpins this vision.

These objectives are:

1.Economic growth: to foster the rollout of renewable energy and battery storage projects, which will inject significant local economy investment.

2. Industrial Capacity Expansion: to seek expansion of the industrial capacity in the renewable energy and storage value chains, particularly in manufacturing operations which will develop local manufacturing capabilities for key components such as solar panels, wind turbines and batteries.

3. Create and sustain employment opportunities: Renewable energy and battery value chains will create a wide range of employment opportunities, particularly for skilled and semi-skilled workers. According to SAREM it is targeting the creation of 25 000 full-time jobs in the renewable energy and battery storage manufacturing sectors by 2030.

4. Skills development fit for the industry: Building the necessary skills base is crucial for the sustained growth of the industry. SAREM focuses on upskilling workers, supporting research and development, and fostering technological innovation.

5. Industry transformation throughout the value chain: The renewable energy and storage sector offers a platform for inclusive development, which SAREM aims to leverage by promoting inclusivity and broad-based participation.

6. Contribute to a just transition and support the inclusive shift of South Africa’s electricity supply: SAREM supports the inclusive shift of South Africa’s electricity supply from a centralized, carbon-intensive model to a decentralized, low-carbon structure, emphasizing the need to expand access to renewable energy and storage solutions beyond middle-income and high-income households and large enterprises. This expansion is seen as both a social necessity and a means to enhance market scale and support industrial development.

To implement, SAREM is structured on 4 key pillars which include:

1. Supporting demand: The focus is on creating a robust and consistent demand for renewable energy and storage technologies through procurement pipelines, infrastructure development, and support for various market segments. It explores new demand drivers by fostering power-to-X markets, including green hydrogen and New Energy Vehicles (NEVs).

2. Driving industrial development: SAREM aims to align public policy with localization objectives, re-activate the tax allowance incentive, and support energy security in industrial parks. SAREM emphasizes the importance of establishing comprehensive and affordable testing and certification facilities for locally manufactured products. In terms of harnessing trade policy, the masterplan reviews and applies for import duty exemptions or protections on strategic inputs and implementing Customs Control Areas in relevant Special Economic Zones (SEZs).

3. Fostering inclusive development: SAREM aims to foster inclusive development in renewable energy and storage value chains by promoting social transformation. Key actions include implementing a B-BBEE scorecard, establishing a Transformation Fund, and launching public procurement rounds in transition hotspots. It promotes decent work and inclusivity through guidelines for Employee Share Ownership Plans, a gender inclusivity action plan, and a framework for monitoring decent work

4. Building capabilities: SAREM focuses on updating skill maps, standardizing training, and developing a PSET infrastructure programme. It expands internships with Yes4Youth, creates an Artisan Recognition of Prior Learning programme, and enhances technology and commercialization through OEM-led clusters, matchmaking platforms, and business incubation support.

SAREM is an action-orientated plan which aims to transform the South Africa’s renewable energy and storage value chains by 2030. The approval of SAREM marks a milestone in South Africa’s focus on a sustainable and inclusive energy future for South Africa.