Futuregrowth Asset Management, one of the country’s largest fixed income investors has backed the recently released Integrated Resource Plan (IRP 2025), saying the blueprint, which will determine SA’s energy mix until 2050, makes a return to clean energy policy.
Futuregrowth, however, has cautioned that the risks related to not implementing the IRP remain high.
The IRP 2025, gazetted this week, lifts renewable-energy ambition, targeting a combined 17GW of additional wind and solar capacity by 2030. The shift comes after years of stalled procurement rounds, grid bottlenecks and policy uncertainty that fuelled load-shedding and deterred private investment.
The IRP 2025 seeks to accelerate the diversification of the energy mix by expanding renewables, gas and nuclear capacity while managing the gradual decommissioning of coal plants. It also aligns with SA’s commitment to reach net-zero emissions in the electricity sector by 2050.
It comes as Eskom appears to be stabilising after years of turmoil. The state power utility, which was once at the centre of SA’s electricity crisis, returned to profit in 2024/25 posting R24bn in pre-tax earnings. This was driven largely by improved performance at its coal fleet and reduced use of expensive diesel generators, cutting diesel costs by about R16bn.
Futuregrowth, which manages more than R200bn in assets and has been among the country’s most active financiers of renewable infrastructure, said the revised plan signals renewed alignment between policymakers and capital markets.
The final IRP, it said, reflects “meaningful stakeholder engagement and alignment between SA’s decarbonisation goals and the institutional capital ready to support them”.
“We now have an ambitious plan. However, the test is execution,” said Jason Lightfoot, senior portfolio manager.
Futuregrowth pointed to the success of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) as evidence of what can be achieved with credible contracting frameworks. “REIPPPP’s R250bn deployment across 123 projects with zero defaults shows what’s possible when frameworks meet all nine bankability requirements: clear regulation, standardised contracts and appropriate risk allocation,” Lightfoot said.
The government is preparing to launch a new round of grid-expansion procurement under the Infrastructure Transmission Programme, alongside plans for 6GW of gas capacity split between independent producers and Eskom.
Futuregrowth warned that infrastructure sequencing will determine whether the IRP translates into actual investment.
“Synchronising transmission infrastructure with generation rollout will be the critical determinant of whether these targets translate into a fundable pipeline,” Lightfoot said.
Since 2011 the firm has funded more than 31 renewable-energy projects across wind, solar and hydro technologies under REIPPPP, contributing to job creation and emissions reductions. But it reiterated that clear procurement structures will be needed again.
“Capacity targets don’t become investment opportunities without robust programme structure,” he said.
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