According to the Renewable Energy Financing and Subsidy Office (Refso), a Department of Minerals and Energy entity, the criteria for qualifying for a greenfield renewable energy project grants will be reviewed.
Currently the maximum capital cost is capped at R100 million. Minimum project sizes are also spelled out and sit currently at 1MW of electricity, or 914/kl/y for biodiesel, and 1 495 kl/y of bioethanol. The subsidy rates for 2007/08 were R500/kW for electricity, R273/kl/y for biodiesel, and R167/kl/y for bioethanol. A 25% black economic empowerment (BEE) component is also required. A host of pre-qualifying criteria, including a pre-feasibilty study, are also required prior to gaining access to a grant.
Last year Refso, had a budget of R5.4 million to issue capital grants for renewable energy projects in the country, and hopes to increase public awareness of the program this year. More information on the renewable energy subsidy program can be found at www.dme.gov.za/energy/refso.