Hope and trepidation at South African REIPPP announcement

Energy minister Mmamoloko Kubayi announced on 1 September that the government intends to engage preferred bidders through the IPP Office to renegotiate all bids of more than R0.77 ($0.06)/kWh from bid windows 3.5 – a concentrated solar power only round – and 4. The announcement was greeted by a measure of positivity by industry associations but the intention to renegotiate is a major concern. The tariff cut-off announced by the minister includes every solar photovoltaic (PV) project bid in the fourth round – some 12 projects – as well as Kruisvallei hydro and Ngodwana biomass, also round 4, and Redstone concentrated solar power from round 3.5.