S’Africa eager on power purchase agreement

The South African renewable IPP market welcomed the announcement made by the minister of energy, Mmamoloko Kubayi, to proceed with bid Window 3.5 and 4 developments.

The Minister said that the Department Of Energy (DoE) will proceed with the outstanding power purchase agreements (PPAs) for round’s 3.5 and 4, which will be ready for signing by 28 October 2017.

She added that the DoE, through the IPP Office, will engage with all affected parties for Bid Window 3.5 and 4 to re-negotiate not above R0.77c per kWh.

Commenting on the decision, the South African Photovoltaic Industry Association (SAPVIA) said in a statement: “This will bring much needed investment, secure current jobs and manufacturing investments in the sector, and create new jobs and opportunities for communities surrounding these projects.

“The signing of the PPAs will fast track the delivery of employment opportunities, local manufacturing opportunities, social development programmes and the benefits of community ownership, all of which are common features of all REIPPPP projects.”

The association further noted: “These announcements send a positive signal to the market that the Government is committed to ensuring renewable energy plays its part in the future energy mix in a manner that ensures economic transformation of the sector, and ultimately broader economic participation of South Africans in renewable energy.”

Following the Minister’s announcement, the South African Wind Energy Association (SAWEA) said in a statement: “The announcement has provided much needed policy certainty and evidence that the country’s Renewable Energy Procurement Programme (REI4P) remains part of government’s vision for South Africa’s development in the context of transition toward a more diverse energy mix.”