The Western Cape Department of Environmental Affairs & Development Planning and Department of Agriculture has launched the 2025 regional green economy market intelligence reports (MIRs) identifying key developments in renewable energy, water and sustainable agriculture.
“The key findings from the MIR’s supports the Western Cape Government’s vision of a green province where economic opportunities, a healthy natural environment and sustainable food production are not competing with one another but are complementing one another and stimulating growth,” said Minister Anton Bredell, Western Cape Minister of Local Government, Environmental Affairs and Development Planning
The reports, developed in partnership with GreenCape, highlight the most promising investment opportunities in key green economy sectors in the Western Cape.
“In a fast-moving green economy, data and information alone is no longer enough – we need intelligence. Intelligence turns data into insight, helping us make smarter, faster decisions that drive sustainable growth and position the Western Cape as a leader in climate-resilient innovation and the green economy,” said Dr Ilse Trautmann, Deputy Director General: Agricultural Research and Regulatory Services, Western Cape Department of Agriculture.
“The Department of Local Government is proud to support the 2025 Regional Green Economy Market Intelligence Reports. These reports provide critical insights that empower municipalities to unlock sustainable, inclusive growth opportunities in the green economy. Local government plays a pivotal role in creating enabling environments for investment in renewable energy, water resilience, and sustainable agriculture. The reports align with our mandate to build the institutional capacity of municipalities, strengthen infrastructure planning, and support innovative partnerships that deliver essential services to communities. We encourage municipalities, the private sector, and development partners to make full use of these reports to drive green infrastructure investments that improve service delivery, create jobs, and enhance climate resilience across the Western Cape,” said Marius Brand, Director at Department of Local Government,
Renewable energy investment opportunities 2025
Download the full renewable energy MIR here: Click
“The energy industry (ESI/EDI) is transforming at such a rapid pace in our country, it will require an even more responsive policy and regulatory framework to take advantage of the private sector appetite for investment,” said Alwie Lester, Special Advisor, Department of the Premier.
Three key investment opportunities are elaborated on:
Embedded solar PV for agricultural, commercial, and industrial users: The embedded solar PV market for commercial, industrial, and agricultural users in the Western Cape, currently valued at R6 billion with 440 MW of installed capacity, is projected to grow to 1 500 MW (R20 billion). This growth is driven by cost-saving potential, favorable financing options, and supportive regulations surrounding the technology.
Large-scale renewable energy projects: With 465 MW of solar PV and 958 MW of wind power installed, the Western Cape’s large-scale renewable energy market is valued at R21 billion, with an additional R18 billion in projects set to roll out over the next six years. Despite grid capacity constraints, the implementation of a 10% maximum curtailment could unlock 2 680 MW of grid capacity for wind power, translating to R45 billion in potential investment. Growth is driven by technology cost competitiveness, carbon reduction targets, and an enabling environment for wheeling and energy trading.
Behind-the-meter (BTM) Li-ion battery storage for commercial, industrial, and agricultural applications: The BTM Li-ion battery storage market for commercial, industrial, and agricultural users in the Western Cape, currently valued at R750 million, is closely tied to the growth of embedded solar and is expected to reach R2.3 billion by 2030. Improved cost competitiveness, value-stacking opportunities for tariff optimisation and the requirement for energy security drive the uptake of this technology.
Water investment opportunities 2025
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Two key investment opportunities are elaborated on:
Localisation of manufacturing: South African metropolitan municipalities are investing in water, wastewater treatment, sanitation, and stormwater infrastructure, providing key opportunities for businesses in these areas. The combined metropolitan municipalities planned water and sanitation infrastructure spend over the medium term (2024/2025 – 2026/27) is approximately R54.6 billion, of which R22.4 billion is planned by the City of Cape Town. Collectively, the other Western Cape local municipalities are planning to invest ~R7.7 billion in water infrastructure over the same period.
The water value chain components which present the biggest opportunities for localisation are mechanical hardware relating to WWTW and pumps. Opportunities for the plastic pipe market (HDPE pipes) will also be further unlocked within the next 10 years as municipalities are now in the position to replace their water distribution systems due to the current asbestos pipes reaching end-of-life.
Innovative financing models: The Water Services Infrastructure Grant (WSIG) and Regional Bulk Infrastructure Grant (RBIG) allocations to local municipalities in the Western Cape over the next three years is expected to be well below R2 billion. Municipalities that have not built up a substantial capital reserve to fund projects will rely on external loans for project implementation.
There is an increase in project preparation support and available development finance linked to impact and sustainable development goals. These programmes include the Sustainable Infrastructure Development and Financial Facility (SIDAFF) and the Water Partnerships Office (WPO), both aiming to assist municipalities in building a pipeline of bankable projects.
Sustainable Agriculture investment opportunities 2025
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The primary investment opportunities are:
Smart farming: Remote sensing and variable-rate technologies represent the key opportunities, with precision-spraying via drones as the main technology to enhance cost and resource efficiency. The market size for grain crops is R156 million per season and tree crops R50.9 million per season.
Undercover farming: Technologies such as shade netting and tunnels offer significant investment potential, investment ranging from R5.4-R8.6 billion, to improve climate resilience and resource conservation in primary production.
GreenCape’s support to businesses and investors
Through close working relationships with businesses, investors, government, and academia, GreenCape’s sector desks are in a unique position to collect, create, and disseminate free market intelligence on the green economy. Get in touch to explore these investment opportunities in greater depth.
