A recent report supported by Anglo American and conducted by Economist Impact highlights the obstacles impeding South Africa's energy transition. The study, titled "Powering Progress: Policy shifts and economic frameworks to enable South Africa's energy transition," emphasizes that policy gaps and inflexible legislation are hindering progress. The Integrated Resource Plan (IRP) of 2019, which governs the energy landscape, is deemed incomplete and outdated by policy experts. The report suggests transforming the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) by improving bidding practices and offering more favourable participation terms. Shifting the focus of the program from generation to transmission could also enhance grid value. Agile policies and robust technical expertise are crucial for regulatory interventions supporting the energy transition.

Furthermore, the report emphasizes that the unbundling of South Africa's energy sector requires suitable supporting policies. While efforts to divide Eskom into three subsidiaries for generation, transmission, and distribution align with diversification and debt reduction goals, privatizing the utilities sector remains contentious. The report highlights the potential of renewable power to provide affordable and reliable electricity for low-income households. Engaging in international partnerships, such as the Just Energy Transition Partnership (JETP), can drive accountability, implementation, and funding. However, the report notes that the South African government has been slow to develop investment and implementation plans for the JETP.

Addressing paradoxes in the government's energy-related fiscal programs is another area of concern. While subsidies support renewables, tax exemptions for oil, coal, and gas favour fossil fuels. The current carbon tax is insufficient to incentivize emissions reduction. To achieve a just transition, the report suggests deploying creative and timely social policies, particularly focusing on the youth. While transitioning away from coal may result in job losses, estimates suggest that the JETP could create a million jobs between 2023 and 2050. Transition assistance, including temporary basic income and reskilling programs, is needed to facilitate the shift from coal to renewable energy jobs. Enhanced grid capacity and stability are expected to attract new investment and contribute to collective decarbonization ambitions, according to Anglo American South Africa Chairperson Nolitha Fakude.