The Western Cape Government in South Africa has identified the concept of a green economy as a way to transform the Province’s economy to one that is more sustainable from an economic, social, and environmental perspective. System dynamics modelling was used to develop a better understanding of the implications of different green economy policies and investments in the electricity sector of the Western Cape Province. The results suggest that continuing on the current policy path would increase the gap between demand and supply, increase the carbon footprint of the electricity sector, and not provide growth in employment in the sector. Strategic green economy investments are therefore expected to impact positively on a number of indicators across a number of sectors.