LONDON, Jan. 14 -- The government of the United Kingdom issued the following news:

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 developmentsand infrastructure expansion

Progress on energy sector reforms, renewable energy investment, private sector participation in transmission, and improvements in distribution infrastructure,demonstratethat South Africa's JustEnergyTransition (JET)continues ona positive trajectory.

JETPs represent a pioneering model of country-led clean energy transition support - aligning domestic policy with international and private finance -whichisgaining momentum globally.

TheIPG welcomekey 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), andthe process for construction of over14,000 km of transmission lines over the next decadeis 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 areasat all levels.

IPG projectscontribute toprogress in key areas

Significant investments have been made over the year. For example, Germany (KfW) have provideda landmark €150m loanto the City of Cape Townto bolster the city's grid;the UK (BII and PIDGGuarantCo) have provided$100m ofinnovative guarantee financing toanenergytrading companyto unlock new capacity; the EU (EIB) havesigneda €350 millionloanwithTransnet and Francerecently announced afurther€300mloan to support the SOE's decarbonisation plans.

Technicalassistanceto support South Africa to implement the SAWEM is ongoing, for example Denmarkarebuilding capacity on regulation, power market development, energyplanningand procurement models in the key institutions.

Delivering a Just transitionremainsof paramount importance.Successes this year includea strong focus on supporting SMMEs,including attracting successful investment,alongsideskills developmentprogrammesbothwithin the renewable energy value chainand more broadly.

Notably, the construction of theGrootvleiHorticulture Expertise Facility, funded by the Netherlands, isnowwell underway at the site of theGrootvleipower station. The goal is tocreate alternative employment opportunitiesthrough 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 willmaintainfocus on effective delivery while reflecting on lessons learned to inform future JETP countries and next-generation platforms.

The JET PMU willinitiatea comprehensive evaluation of implementation in collaboration with IPG members and stakeholders. Support from the IPGremainsstrong, and all parties reaffirm their commitment to theobjectivesset 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 -remainsvital.

Further information

You can read the12-month Just Energy Transition Partnership leaders' update 2025 - GOV.UK

Media enquiries:

media.southafrica@fcdo.gov.uk

Disclaimer: Curated by HT Syndication.