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South Africa launches renewable energy programme

South Africa’s news 20-year plan calls for 42% of new energy generation capacity to come from renewable sources.

By Isabella Kaminski

According to law firm Dewey & LeBoeuf, investors raised concerns earlier this year when the South African energy regulator NERSA announced consultation on plans to reduce its published feed-in tariffs by as much as 42%.

However, before NERSA finalised and published the results of this consultation, the South African Department of Energy announced in June that procurement would involve price competition, apparently signalling the end of tariff plans.

The technologies included in the procurement process are onshore wind, solar thermal, solar photovoltaic, biomass, biogas, landfill gas and small hydro. The initial procurement is expected to be for up to 3,825 MW of renewable capacity for projects that are able to achieve commercial operations by 2016.

The deadline for proposals has not been announced but Dewey & LeBoeuf expects the initial bid period is expected to be up to three months, with further bidding windows later on.

Bids will be required to be accompanied by a bank guarantee amount equal to ZAR100,000 (£9133) per MW of the proposed installed capacity of the relevant facility.

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Bioenergy  •  Other marine energy and hydropower  •  Photovoltaics (PV)  •  Policy, investment and markets  •  Solar electricity  •  Wind power