GDF Suez Considering South African Wind Energy Projects

GDF Suez has been searching for an open-cycle gas turbine project in South Africa, but has now announced that it would consider investing into the country’s wind energy sector after the release of its renewable energy feed-in tariff (Refit).

Speaking at the Power & Electricity World Africa 2009 conference held in Johannesburg, business development vice president for Southern Africa Maarten van der Horst said the Refit created a “strong incentive” for renewable investments. “We are interested mainly in wind power generation,” Van der Horst reported, adding that the tariffs proposed as from 2009 created an environment for investors to “seriously” consider investing in South Africa. However, the company reported that before continuing, some obstacles still needed to be overcome as well as questions answered.

The National Energy Regulator of South Africa’s (Nersa’s) proposal to review the Refit yearly was of particular concern as Van der Horst believed it created some uncertainty about whether the favorable tariffs would be sustained. It also wanted greater certainty on the governance framework surrounding the power purchase agreements (PPAs), particularly given that Eskom would be the renewable-energy purchasing authority.

Nersa unveiled the Refit regime for potential wind, mini-hydro, landfill-gas, and concentrating-solar power investments in March, and indicated that it had already received several inquiries from potential investors. “From our perspective, the Refit is a very good start to establish renewable energy generation sources in South Africa,” Van der Horst concluded.