South African nonprofit organisation GreenCape has released the 2023 edition of its yearly green economy market intelligence reports (MIRs), which highlight the most promising market opportunities in key green economy sectors in South Africa.

The reports are published in partnership with the UK’s Partnering for Accelerated Climate Transitions (PACT) programme, Germany’s Friedrich Naumann Foundation for Freedom and the Western Cape government's Department of Agriculture.

The MIRs provide an overview of the national markets in energy, electric vehicles (EVs) and water, and regional Western Cape market for sustainable agriculture. This includes sections highlighting key developments and achievements, the key players, legislation and regulation, market opportunities and challenges, as well as funding opportunities.

According to the ‘Energy Services 2023 MIR’, positive regulatory movement and investor sentiment, as well as a steady recovery in the key commercial, industrial and agricultural sectors have led to continued market growth in 2022.

The market is still expected to reach a total capacity of 10 GW by 2035 at a market value of about R100-billion. This steady growth, which translates to the potential creation of about 1 250 jobs, is said to be significant in the South African context, considering the ongoing need to reduce the current unemployment rate.

Energy services investment opportunities highlighted for this year are rooftop solar photovoltaic installations of 600 MW to 900 MW, valued at about R7.5-billion; behind-the-meter storage of 250 MW, valued at about R2-billion; and the upgrading of 100 000 to 300 000 smart meters at a cost of between R1.2-billion and R1.6-billion.

Meanwhile, according to the ‘Electric Vehicles 2023 MIR’, the emerging EV market currently represents a small share of the South African automotive industry but holds considerable opportunities for businesses and investors that are already active in or are interested in investing in the sector.

Four key market opportunities that have been identified as attractive sectors for investment in the EV industry in South Africa are local manufacturing and the electrification of public transport; electric micro-mobility for last-mile delivery; local manufacturing of electric private passenger vehicles; and local lithium-ion cell manufacturing.

Further, according to the ‘Large-scale Renewable Energy 2023 MIR’, large-scale renewable energy investment opportunities highlighted for this year include the public procurement of new generation capacity; the private procurement of new generation capacity; and the local manufacturing of renewable energy components and systems.

Water investment opportunities highlighted in the 2023 MIR are the upgrade of wastewater infrastructure in the public sector; the beneficiation of public sector wastewater sludge; and the implementation of renewable energy and energy efficiency interventions at public sector wastewater treatment works.

Sustainable agriculture investment opportunities highlighted in the 2023 MIR entail renewable energy applications; regenerative agriculture; smart farming and circular agriculture.