The International Partners Group (IPG) – made up of the United Kingdom (Chair), Denmark, the European Union, France, Germany and the Netherlands – and the JET Project Management Unit have released their joint 12‑month update on the Just Energy Transition Partnership (JETP). The update was published at the end of 2025 and shows significant progress in South Africa’s clean energy transition.
IPG members have pledged $10 billion, with additional bilateral contributions bringing the total to $12.4 billion. When combined with multilateral development bank (MDB) commitments, the overall package reaches $13.7 billion.
Although the United States withdrew from the partnership in February 2025, all remaining partners have reaffirmed their strong support for South Africa’s just and inclusive energy transition.
Key policy developments and infrastructure expansion
Progress on energy sector reforms, renewable energy investment, private sector participation in transmission, and improvements in distribution infrastructure, demonstrate that South Africa’s Just Energy Transition (JET) continues on a positive trajectory.
JETPs represent a pioneering model of country-led clean energy transition support – aligning domestic policy with international and private finance – which is gaining momentum globally.
The IPG welcome key policy and market developments over the past year, with regulatory frameworks and capacity-building well underway for the launch of the South African Wholesale Electricity Market (SAWEM) scheduled for April 2026.
NERSA has granted a Market Operator licence to the National Transmission Company South Africa (NTCSA), and the process for construction of over 14,000 km of transmission lines over the next decade is underway, supported by private sector-led Independent Transmission Projects (ITPs) and a World Bank-backed Credit Guarantee Vehicle to de-risk investments.
South Africa’s G20 Presidency amplified its commitment to decarbonisation while prioritising energy access, and the JET portfolios are now firmly embedded within South Africa’s governance structures, enabling sustained momentum across the priority areas at all levels.
IPG projects contribute to progress in key areas
Significant investments have been made over the year. For example, Germany (KfW) have provided a landmark €150m loan to the City of Cape Town to bolster the city’s grid; the UK (BII and PIDG GuarantCo) have provided $100m of innovative guarantee financing to an energy trading company to unlock new capacity; the EU (EIB) have signed a €350 million loan with Transnet and France recently announced a further €300m loan to support the SOE’s decarbonisation plans.
Technical assistance to support South Africa to implement the SAWEM is ongoing, for example Denmark are building capacity on regulation, power market development, energy planning and procurement models in the key institutions.
Delivering a Just transition remains of paramount importance. Successes this year include a strong focus on supporting SMMEs, including attracting successful investment, alongside skills development programmes both within the renewable energy value chain and more broadly.
Notably, the construction of the Grootvlei Horticulture Expertise Facility, funded by the Netherlands, is now well underway at the site of the Grootvlei power station. The goal is to create alternative employment opportunities through sustainable climate smart and water efficient agriculture, specifically horticulture, developing skilled workers, farm managers, and agricultural entrepreneurs in the region.
Looking Ahead to 2026
The JETP has had a tangible impact in creating an enabling environment for transition, mobilising finance, and sustaining political momentum for South Africa’s just energy transition.
In 2026, partners will maintain focus on effective delivery while reflecting on lessons learned to inform future JETP countries and next-generation platforms.
The JET PMU will initiate a comprehensive evaluation of implementation in collaboration with IPG members and stakeholders. Support from the IPG remains strong, and all parties reaffirm their commitment to the objectives set out in the JETP Political Declaration (2021), Investment Plan (2022), and Implementation Plan (2023).
In today’s uncertain geopolitical context, sustaining a just energy transition – including its social dimensions – remains vital.
Further information
You can read the 12-month Just Energy Transition Partnership leaders’ update 2025 – GOV.UK