Renewable energy independent power producers (IPPs) are set to be selected in South Africa by Q3 of this year to help meet the country’s target of 10,000 GWhs of RE by 2013, according to the National Energy Regulator of South Africa’s (Nersa’s) Thembani Bukula.
Bukula spoke at a briefing organized by the Mail & Guardian and Neotel saying that the work on the IPP selection criteria for the introduction of these projects was very advanced. About R12 billion has been approved as part of the Eskom tariff increases to enable the state-owned utility to contract with renewable IPPs between 2010 and 2013.
"But come hell or high water those 10,000 GWhs must be in the system by 2013," Bukula insisted, explaining that it would translate into renewable projects with a combined capacity of 1,140 MW.
The bulk of this capacity was likely to be wind based, with solar, landfill gas, and mini-hydro making up the balance. However, Energy Minister Dipuo Peters said in June the country would try to acquire the funds from independent power producers (IPPs) to build a 400 MW wind power station within the next three years (South Africa: Wind Power by IPPs in Three Years).
Alternative Energy Africa reported in March 2009 that international engineering consultancy Hatch believed that the prospects for IPP projects in South Africa are “closer than ever” despite a definite air of frustration among potential developers, many of which have had their IPP project plans set back by a series of regulatory and Eskom tender delays (IPP Projects “Closer than Ever” in South Africa).
However, Bukula indicated that there could be some resistance from municipalities, which could lose revenue should households or property developers be able to feed into the grid.
Bukula told Alternative Energy Africa that, “Most of the IPP’s that will come onto stream within a few months are the co-generators that either have existing plants or are about to commission them. In 2010 even before Q3 we will have about three IPP’s supplying about 50 MW. There should be another 6 or so that were part of a program with about 1,000 MW (MAX). The selection of the REFIT IPPs should also be concluded by Q3 2010.”
He added, “At this stage I don’t have a feel of the number of IPP’s that will be taken in order to meet the 10,000 GWh target from renewables by 2013.”
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