Advancing the Just Energy Transition in Mpumalanga
South Africa moves forward with a strategic collaboration to drive green energy initiatives.
Introduction
In a significant step towards South Africa’s Just Energy Transition (JET), the Presidency and the Mpumalanga Green Cluster Agency (MGCA) have formalized their partnership through a Memorandum of Understanding (MoU). This agreement outlines a framework for cooperation in implementing the Mpumalanga Just Transition Portfolio, a critical component of the country’s shift from coal-based energy to sustainable alternatives.
The presidency was represented by Ms. Phindile Baleni, the director-general and secretary of cabinet, while the MGCA was represented by Mr. Nkosinathi Nkonyane, the chief executive officer.
Background & Objectives
The presidency’s Just Energy Transition Project Management Unit (JET PMU) is responsible for leading the implementation of South Africa’s Just Energy Transition Investment Plan (JET IP), which was approved by Cabinet in November 2023. As a non-profit company, the MGCA plays a crucial role in unlocking economic opportunities within the green economy to support job creation and economic diversification in coal-dependent communities.
The MoU serves to:
- Define the roles and responsibilities of each party in delivering the JET Implementation Plan.
- Confirm MGCA’s function in the Mpumalanga Just Transition Portfolio (2025-2027).
- Identify the capacity-building needs for MGCA and outline how the JET PMU will support its growth.
- Establish clear communication and reporting mechanisms between the stakeholders.
Roles & Responsibilities
Each party has defined responsibilities to ensure effective execution of the JET Implementation Plan:
The Presidency (JET PMU) will:
- Provide the national roadmap for JET implementation.
- Mobilize funding through the JET Funding Platform, assisting project originators.
- Maintain the JET Investments Register, tracking financial contributions to the transition.
- Oversee monitoring and evaluation to ensure strategic alignment with national energy goals.
The MGCA will:
- Act as the secretariat for provincial coordination efforts on JET initiatives.
- Support community organizations, businesses, and trade unions in preparing JET projects.
- Facilitate access to funding resources for green economy projects in Mpumalanga.
- Ensure consistent reporting and tracking of JET implementation progress.
Collaboration & Capacity Building
Recognizing the need for enhanced resources, the MoU outlines a commitment to securing donor funding to support MGCA’s additional staffing and operational needs. The presidency will facilitate funding agreements, while MGCA will ensure transparency in resource allocation.
“This agreement marks a significant step towards carbon reduction in Mpumalanga, contributing to economic, social, and environmental benefits for local communities,” said MGCA CEO, Mr. Nkosinathi Nkonyane.
Communications & Reporting
A robust communication strategy will be developed with the Mpumalanga Provincial Government to ensure public awareness and engagement with the Just Energy Transition. Quarterly reports on JET progress in Mpumalanga will be shared nationally to provide accountability.
Duration & Amendments
The MoU is effective from the date of signing until 31 December 2027, with provisions for annual review and possible extension. Either party may terminate the agreement under specified conditions, ensuring flexibility while maintaining momentum in achieving JET objectives.
Conclusion
With this agreement, South Africa strengthens its commitment to a just and inclusive energy transition that prioritizes sustainable growth and local economic empowerment. By working together, the presidency and MGCA aim to drive investment, create jobs, and facilitate a greener future for Mpumalanga.
