The environmental impact assessment (EIA) for the proposed St. Helena Bay wind farm in South Africa has been released. The R850 million wind farm, scheduled to begin construction this month, will have the capacity to produce 50 MW of the renewable energy.
Genesis Eco-Energy COO Davin Chown explains that the EIA for the renewable energy project was originally scheduled to start in June last year.
“However, the EIA was delayed owing to the fact that a number of international investors were concerned about the international macroeconomic climate and the uncertainty in the international financial markets and, thus, were averse to provide funding for the St Helena Bay project at that time,” Chown said.
“In addition, the uncertainty around the Department of Minerals and Energy’s Expression of Interest process for renewable energy projects, which will afford project developers and Independent Power Producer’s (IPP) a sound opportunity to really help develop and drive the renewable energy market, is another concern for investors,” he continued.
Chown stated that while investors are very keen to invest in the project, they are reluctant to commit finances while the National Energy Regulator of South Africa is still deliberating on the proposed feed-in tariff scheme for the renewable energy sector.
The proposed feed-in tariff (FIT) was circulated for public comment last year and the national regulator concluded its public hearings last week as part of the official consultation process.