On 15 October 2025, the Cabinet approved the Integrated Resource Plan (“IRP”) 2025, which replaces the IRP 2023, marking a decisive step towards restructuring the South African energy landscape.

Here are ten key insights into the IRP 2025 and what it means for South Africa’s future:

#1 IRP 2025 is now an official policy of the government

The IRP 2025 is a long-term plan designed to map out the country’s electricity mix, aiming to balance supply and demand. The IRP 2025 sets the direction for how South Africa will meet its growing energy demand through to 2050.

#2  A 2.23 trillion investment roadmap

The IRP 2025 outlines a total investment of R2.23 trillion in new generation capacity and grid expansion. The funding will be redirected towards building new generation capacity, upgrading transmission networks, and integrating renewable energy sources — all critical for driving energy in South Africa toward long-term sustainability and resilience.

Contact Sitef & Co. on 010 300 1006 or email info@sitef.co.za for more information.

#3 New generation capacity by 2039

The IRP 2025 projects more than 105 00 MW of new generation capacity by 2039, reflecting South Africa’s most comprehensive power expansion plan to date. Central to this roadmap is the 6000 MW of new gas-to-power by 2030, critical for energy security and a stable power system. The IRP 2025 further provides for the nuclear industrialisation plan, which will evaluate the feasibility and strategic value of deploying up to 10 000 MW of new nuclear generation capacity. 

In addition, the IRP 2025 includes the development of a Clean Coal Technologies Demonstration Plant by 2030, as the country explores alternative solutions that are potentially cheaper and more efficient than Flue Gas Desulphurization for the continued use of coal power generation, a significant component of energy in South Africa.

#4 Solar, wind, gas and nuclear form the new energy mix

The IRP 2025 promotes a well-adjusted mix of energy sources, including solar, wind, gas, nuclear, and coal. This mixture is crucial in ensuring resilience and flexibility in response to changing energy demands and the challenges posed by climate change. 

#5 Balancing cost, reliability, and sustainability

The IRP 2025 places an emphasis on a balanced transition aimed at maintaining energy security while progressively reducing emissions. It recognises that while renewable resources offer cost advantages, dispatchable sources such as gas and nuclear remain essential to ensure reliability and grid stability — all under the evolving framework of energy law in South Africa.

#6 Mining and industrial impacts

When it pertains to the mining and heavy industries, the IRP 2025 offers both opportunities and risks. Reliable energy supply is crucial for operational stability, while localisation targets could be beneficial to mining companies supplying minerals used for solar panels, wind turbines, and battery storage systems. Energy cost projections and grid access will become central to long-term resource strategies. 

#7 Strong focus on localisation and job creation

The IRP 2025 is designed to stimulate domestic manufacturing of energy components, build local supply chains, and create jobs. It includes a just energy transition strategy to retain workers from fossil fuel sectors and promote youth employment in clean energy industries. 

#8 Environmental considerations

In alignment with South Africa’s net zero by 2050 commitment, the IRP 2025 outlines the objective of ensuring security of electricity supply while minimising environmental impact due to electricity generation. It projects emissions of a total of 168 MtCO2eq, compared to the current projected nationally determined contribution of 145 MtCO2eq. 

Furthermore, it aims to reduce the environmental footprint of electricity by limiting both global and local emissions. It focuses on addressing immediate capacity constraints and planning for long-term goals, such as achieving a Net Zero electricity sector by 2050. 

Email info@sitef.co.za to book a consult.

#9 Implementation

While the IRP 2025 provides a comprehensive framework, its success will depend on effective implementation and procurement. Grid expansion, transmission upgrades, and regulatory certainty are essential to unlock private investment and prevent delays that are similar to those seen in earlier energy rounds.

#10 A long-term vision to 2050

The IRP 2025 extends its planning horizon to 2050, enabling policymakers to adapt to technological advancements, climate goals, and evolving economic realities. The long-term approach offers investors greater predictability and provides industries with time to align with the country’s changing energy mix and operational strategies.

The road ahead for energy law in South Africa

The Cabinet’s approval of the IRP 2025 is more than just an energy plan; it is a vision for a more secure, sustainable, and inclusive future. The success of the IRP 2025 will depend on collaboration between South African citizens, industries, and the government.

Contact Sitef & Co. on info@sitef.co.za today to arrange a consultation.

Mihlali Sitefane – Director

Xiluva Mabunda – Candidate Legal Practitioner