All News Fuel Market Industry Analysis 

South Africa Renewable Energy Industry seeks clarity from the government

South Africa Energy Company advocates for specific deadlines for the execution of power purchasing agreements (PPAs) for the start-up of expanded electricity generation. As a response to the energy supply issues of SA, President Cyril Ramaphosa accepted renewable energy funding. During the meeting of his National Address (SONA), the week before, Ramaphosa gave a press conference. A section 34 federal decision must shortly be taken to enforce the 2019 Unified Resource Strategy to improve the incremental grid potential of sustainable energy, electricity, hydroelectric, cell storage, and coal, he stated, to “quick and substantially increase production capacity beyond Eskom.” The indicated section ought to face implementation. 

Business Day states, however, that the state has repeatedly affirmed natural resources and power minister Gwede Mantashe, following Ramaphosa’s SONA pledge, won’t be in a hurry to set up a new tender for renewables. Although Ramaphosa clearly had said that the state would launch the 5 Sustainable Energy Power Project’s bid door, Mantashe claimed that he did not set up a time limit which failed to be “fundamentalist” on the 5th door. Ramaphosa has announced its strong commitment to the Renewable Energetic Procuring Program (REI4P), as demonstrated in the SONA, by the Southern African Wind Energy Association (SAWEA).

SAWEA notes that policy continuity and transparent policy-making is a crucial issue, as leadership’s interest fuels investor interest both domestically and abroad. It indicates that the President has deliberately given priority to restoring investor sentiment and that over the coming five years, the REI4P would lead to the investment gains goal of R1 trillion. “The sector is tremendously pleased to welcome the President, who recognized that the sustainable sector in the country plays a crucial role in power generation,” said Ntombifuthi Ntuli, Chief Executive Officer of SAWEA. Yet, to ensure the utilization of traction, SAWEA has sought clarification on the expected series. “We await the ministry’s expected commitment, too, and a definite timetable for the launching of the growing generation of renewable energy,” says Ntuli. As noted by the government, Section 34 will enforce the Unified Energy Strategy 2019 in compliance with the ministerial decision, allowing the creation of sufficient, sustainable grid efficiency, but this is only the first move in offering new energy to the grids.

“The company will then wait for a contract submission (REI4P Bid Window 5), the declaration of favored bidders, and the fiscal closing duration (around 12 months) to be reached before signing the contracts of purchasing power. The building can then continue with the arrival of new developments in 18 to 24 months on a corporate basis. 

Related posts