Tallying the benefits of South Africa’s Renewable Energy Power Producer’s Procurement Programme
As energy investors eagerly await announcements of the preferred bidders in the latest round of South Africa’s renewable IPP programme – the so-called expedited bid window – it is worth reflecting on the successes of the country’s Renewable Energy Power Producer’s Procurement Programme (REIPPPP) and why it has achieved what many commentators believed was an unachievable feat.
“The REIPPPP has been a resounding success, spurring not only investment into South Africa’s energy sector, but in the broader region,” says Scott Brodsky, Partner and energy lawyer at international law firm Macfarlanes, who are advising clients across Sub-Saharan Africa on all aspects of renewable and other energy projects, including project financing and bankable power purchase agreements.
“The effect of load shedding on life, on businesses and the wider economies is devastating. Although South Africa is having temporary respite from load shedding, some countries in the region are experiencing 12 to 16 hours per day with no electricity. The good news is that IPPs are helping tremendously and the need for new generation has translated into significant new opportunities,” says Brodsky.
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