South Africa’s Renewable Energy IPP Procurement Program

Success Factors and Lessons
Published: 2014
Last Updated: 28 Mar 2024
Author:Anton Eberhard, Joel Kolker, James Leigland

As grid-connected renewable energy independent power projects (IPPs) become prevalent around the globe, debates have intensified on the most effective policy instruments to accelerate and sustain private sector investment in these electricity-generating technologies. Feed-in tariffs (FITs) have been the most widely used government support mechanism for accelerating private investment in renewable energy generation. However, competitive tenders or auctions have also emerged in many jurisdictions as acceptable techniques, especially in emerging economies. In 2009, the South African government began exploring FITs for renewable energy, but they were rejected in 2011 in favor of competitive tenders. The resulting program, known as the Renewable Energy Independent Power Producer Procurement Program (REIPPPP), has successfully channeled private sector expertise and investment into grid-connected renewable energy at competitive prices. This report explores the South African experience of introducing grid-connected renewable energy and shares the key lessons for successful renewable energy programs in other emerging markets.

Document TypeLessons
LanguageEnglish
SectorElectricity, Renewable energy, Energy, Power, Generation
File TypePDF
Keywordsub-sovereign financing, independent power producers (IPPs), energy efficiency
TopicContract Management
ContributorPPIAF
RegionSub-Saharan Africa

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