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Denmark & South Africa's cooperation in the Energy sector

As the second-largest economy in Africa, South Africa is experiencing rapid population growth, coupled with a pressing need for economic expansion and consequently an increased energy demand. The challenge lies in overcoming energy limitations, particularly as many of the nation's coal-fired power plants are near their expiration dates and the transmission grid is not optimized for the introduction of renewable energy.

The Danish Energy Partnership Program (DEPP)

Denmark is at the forefront of this transformative effort, fostering a close partnership with South Africa to transition from coal to renewable energy sources such as wind and solar power. The technical cooperation between Denmark and South Africa focuses on long-term energy planning, unbundling stakeholders in the electricity sector, the emerging electricity market, and the integration of renewable energy into the national grid

Main Partners to the cooperation: 

A Memorandum of Understanding (MoU) has been signed with each of the key South African partners in the Danish-South African energy partnership:

  • The Department of Mineral Resources and Energy (DMRE)
  • The Independent Power Producer Procurement Programme Office (IPPO)
  • The national electricity utility ESKOM
  • The National Energy Regulator of South Africa (NERSA)

A number of other South African partners are included in the program, such as SANEDI, CSIR, the Presidential Climate Commission (PCC), the South African Weather Service (SAWS), and others.

In collaboration with key partners, the Danish Energy Agency exchanges technical expertise and international know-how with South Africa. This collaboration aims to provide efficient and stable solutions to South Africa's current energy shortages and find ways to integrate a higher percentage of renewable energy into the electricity grid. Find more information on the DEPP program in this brief from the Danish Energy Agency: Danmark samarbejder med Sydafrika om en grøn, retfærdig og stabil energiforsyning.

One example of the activities produced by the partnership is the Wind Atlas for South Africa (WASA). The WASA activities have successfully documented and made wind resources publicly available in South Africa. See the Wind Atlas for South Africa. In close collaboration with the South African National Energy Development Institute (SANEDI), the Wind Atlas is under constant development to include extensive and updated data on wind resources.

Denmark’s commitment to a Just Energy Transition in South Africa

The South African energy transition is underscored by a collaborative commitment to ensuring a socially just shift, one that not only meets environmental objectives and national climate ambitions but also preserves and creates jobs for the local workforce. Together with South Africa and several other countries, Denmark is part of the Just Energy Transition Partnership (JETP), which works to ensure a socially just energy transition with new opportunities for employment and skills development.

Denmark’s contribution to the Just Energy Transition Partnership (JETP):  

The Danish commitment to JETP amounts to 165 million USD. Through instruments such as grant funding, concessional and non-concessional loans, technical assistance, and more, these funds are purposed to support a number of JET projects while catalyzing private investments for the just energy transition in South Africa.

A complete list of the International Partner Group’s current grant-funded JET projects is available in the JET-IP Grant Register.

Beyond technical assistance through the Danish Energy Agency, the Danish Embassy in Pretoria annually provides a number of grants to support the international Sustainable Development Goals (SDGs) through various activities, for example:

  • The creation of the Mpumalanga Policy Discussion Map, which provides insights into land use rights and renewable energy potential for policymakers and industry. The interactive map and user manual can be accessed here: The Mpumalanga Policy Discussion Map.
  • Expanding knowledge of wind energy through activities such as networking events, internships, and more, arranged with the South African Wind Energy Association (SAWEA): Link to SAWEA one-pager (PDF).
  • Working to provide alternative basic service delivery in Nomzamo Agricultural Village, as seen from a recent visit to the village: Link to Nomzamo Video, and further explained in the Nomzamo one-pager (PDF).
  • Skills development in primary and secondary schools in Mpumalanga. Together with the organization Teach A Man To Fish, the Danish Embassy is rolling out the School Enterprise Challenge (SEC) across 10 schools in High Veld. The SEC program has a successful track record in fostering entrepreneurship, innovation, and environmental consciousness in local teachers and learners.

Furthermore, Denmark supports the Labor Market Consortium, which engages in the green transition dialogue in the labor market while developing framework conditions for small local businesses, as well as upskilling and educating local workforces for the just transition. The project is implemented by the National Business Initiative (NBI), Business Unity South Africa (BUSA), the Steel and Engineering Industries Federation of Southern Africa (SEIFSA), the National Union of Mineworkers (NUM), the National Union of Metalworkers of South Africa (NUMSA), the Danish Confederation of Industry (DI), and the Danish Labour Organisation (3F).

Contact and further information

For further information on the Danish-South African Energy Partnership and the Embassy’s work in the energy sector, please contact the Embassy of Denmark in Pretoria:

  • Counselor of Strategic Sector Cooperation, Energy: Morten Holm van Donk.
    Email: [email protected]