- Presidency’s JET PMU calls for proposals to design fiscal and policy instruments that can accelerate green hydrogen without new budget lines.
- Study must test GHCS assumptions and propose measures that could cut the levelised cost of hydrogen by at least 10%.
- Findings will inform Cabinet decisions ahead of the 2027/28 budget cycle and guide Treasury, DEE and DTIC on implementation
The Just Energy Transition Project Management Unit in the Presidency has issued a call for proposals for a study to identify budget-neutral fiscal and policy instruments capable of accelerating green hydrogen investment while protecting fiscal sustainability. The work will inform government choices on practical measures to unlock private capital and support delivery of the national Green Hydrogen Commercialisation Strategy.
South Africa treats green hydrogen as a strategic sector for industrialisation, decarbonisation and global competitiveness, yet a persistent green premium between clean technologies and carbon-based alternatives points to market failure. With tight fiscal space and high debt service costs, new public funding allocations for green hydrogen are unlikely, so the state is looking for levers that can reduce early-stage project risks and stimulate a credible market without additional budget appropriations.
The study will evaluate and recalibrate core GHCS assumptions on demand, costs, technology learning and socioeconomic impacts, and propose fiscal, regulatory and institutional options aligned with priorities such as grid expansion and re-industrialisation. It must also assess distributional impacts on women, youth and marginalised communities and quantify the opportunity cost of inaction over a 3-to-5-year horizon.
Primary success criteria include no new budget appropriation for green hydrogen, a reduction in the levelised cost of hydrogen of at least 10%, and administrative feasibility within existing institutions. Secondary targets include driving at least three projects to final investment decision by 2030 and assessing fiscal risk to the state.
Queries on the bid are due by 10 August at 17h00 SAST, with full proposals closing on 19 August at 17h00 SAST.
Download the full call for Professional services to undertake a Study on Budget Neutral Fiscal Support for Green Hydrogen Investments In South Africa HERE
Author: Bryan Groenendaal
