Ahead of COP27: South Africa and Denmark cooperate on developing a sustainable, just and secure energy supply in South Africa

Through close cooperation, South Africa and Denmark work to create a sustainable and just energy supply in South Africa. The energy journey draws on Danish experiences.

By State of Green | [email protected]

25 October 2022

Denmark’s global cooperation

Denmark accounts for 0.1 % of global CO₂ emissions. In driving the global path to net-zero, Danish efforts can offer great inspiration that stands on the shoulder of societal efforts, underlining why public-private collaboration is essential in the quest to develop technologies, policies, and partnerships to accelerate the green transition. By partnering with some of the world’s biggest emitters and fastest-growing economies, Denmark puts its expertise to use where it holds the greatest impact.

Read more about green transition in Denmark

South Africa is Africa’s second-largest economy after Nigeria and the country has almost 60 million inhabitants. South Africa is characterized by a growing population and the need for economic growth but the current energy system is a limiting factor. In addition, according to the World Resource Institute’s Climate Data Explorer, South Africa is the world’s 17th largest emitter of CO2. Greenhouse gas emissions per capita are 59% higher than the world average.

The South African government recognizes this and has laid out a plan for how they will bring about a socially just energy sector by 2030 which will provide stable energy at competitive prices. Access to clean and environmentally sustainable energy at an affordable price is one of the goals of the strategy. The implementation of the strategy requires large investments in the energy system and a conversion from black to green with the inclusion of large amounts of renewable energy sources.

In the Paris Agreement, South Africa has committed to letting greenhouse gas emissions peak between 2021- 2025 at a level between 398 and 510 Mt CO2 equivalents. Whether South Africa can achieve this result is entirely dependent on access to financial capital, technological development, and capacity building.

The Danish energy model is based on 40 years of experience in restructuring the energy system with ambitious political objectives for renewable energy. The Danish transition shows that it is possible to combine economic growth with a substantial reduction in CO2 emissions. These concrete experiences will be utilised in the cooperation for South Africa to achieve a cost-effective, flexible, well-functioning energy system with security of supply.

A global showcase at the Danish Pavilion at COP27

With the biggest Danish COP delegation in history, Denmark looks forward to strengthening ties with international partners while using the opportunity to showcase tangible ways to deliver on public-private climate action. Learn more about side events and activities at the Danish Pavilion at COP27.

Cooperation on political objectives and technical requirements

A basic precondition for growth, employment and equal opportunities is the approach to safe and clean energy. Therefore, the Danish Energy Agency cooperates with the Department of Mineral Resources and Energy (DMRE), the Independent Power Producers Office (IPPO) and Eskom on primarily three areas:

Capacity development in energy planning and wind resource mapping
Development of a liberalized energy market, grid planning and stability with a high proportion of renewable energy sources
Integration of renewable energy sources and grid codes

The purpose of the cooperation is to capacity build further within these areas based on our partners specific needs. The Danish Energy Agency can contribute to more effective implementation of the South African political objectives and help to ensure that the technical requirements are in place.

In close cooperation, DMRE, IPPO, and the Danish Energy Agency will further develop competencies within energy planning and wind resource mapping to create a stronger interplay between the institutions and enable more effective implementation of South African energy policy. These measures will make it more likely that South Africa successfully achieve its climate objectives as defined in the Paris Agreement as well as a just transition. Furthermore, the Danish Energy Agency and IPPO cooperate to streamline their tender program of renewable energy sources with e.g. digital solutions and tendering planning to meet political and social objectives.

Management tools and liberalization of the electricity market

Together, Eskom and the Danish Energy Agency will contribute to solving some of the challenges facing the South African energy system. This applies strategy, planning and technology. On a concrete level, this can e.g. be realised by creating a knowledge platform for strategic management information based on Danish experiences with the development of a liberalized electricity market. Furthermore, the programme also looks at the possibility is to ensure a more effective integration of variable renewable energy sources. The cooperation must also contribute to better capacity within energy forecasts, operational planning and re-prioritization of capacities, updated grid rules and requirements for a liberalized market for additional services.