Renewable energy IPP roundtable discussion | Infrastructure news

Minister of Energy Dikobe Ben Martins said the Department of Energy will continue with the licensing of the next windows of the independent power producers’ programme until renewable energy producers constitute 30% of the energy mix, asset out in the Integrated Resource Plan.

Martins was speaking at recent roundtable discussion held by the Department of Energy with the renewable energy independent power producers (IPPs). The department is in the process of procuring small projects, which will benefit SMMEs in the renewable energy industry.

The discussion was attended by representatives of 61 IPPs, the Development Bank of Southern Africa (DBSA), the Industrial Development Corporation, the Public Investment Corporation, the National Energy Regulator of South Africa (NERSA) and Eskom.Also in attendance were the Ambassadors of Denmark, Spain and Germany, as well as representatives of the Embassy of Norway and the High Commission of the United Kingdom.

The engagement was aimed at taking stock of the progress since the start of the procurement of the first window of the independent power producers’programme in 2012.Since the start of the process, 64 IPPs have been introduced. They are spread across the country and use renewable technologies such as wind, solar, biomass and hydro.

The participants discussed various issues including community participation in thelicensed entities, allocation of megawatts, grid infrastructure and capacity and related issued. Issues raised by the IPPs include:

  • the need to strengthen the existing model of community participation
  • regular interaction between government and IPPs, including effective coordination between the three spheres of government
  • accelerating the upgrade of existing grid infrastructure and the development of new infrastructure
  • ensuring certainty in the allocation of megawatts
  • inclusion of storage capacity in the procurement requirements.

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