scholarly journals An updated review of South African CSP projects under the renewable energy independent power producer procurement programme (REIPPPP)

2019 ◽  
Author(s):  
James Larmuth ◽  
Alberto Cuellar
Author(s):  
Christopher Ettmayr ◽  
Hendrik Lloyd

Background: Economies aim to grow over time, which usually implies the need for increased energy availability. Governments can use their procurement of energy to increase benefits in their economies via certain policy tools. One such tool is local content requirements (LCRs), where the purchase of goods prescribes that a certain value has to be sourced locally. The argument for this tool is that spending is localised and manufacturing, as well as job creation, can be stimulated because industry will need to establish in the host economy. However, this practice is distortionary in effect and does not create a fair playing ground for global trade. Furthermore, if the local content definition is weak, or open to manipulation, the goals of such a policy may not be achieved at all.Aim: The objective of this study was to determine how LCRs would ultimately impact on the overall procurement programme.Setting: This study took place as South Africa commenced with large scale development of the renewable energy sector. This was largely achieved via the State run Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).Method: This study utilised opinion-based surveys to look into the LCRs of South Africa’s REIPPPP and measure the impact of this policy on the renewable energy sector in general. The mixed method approach was utilised to analyse qualitative and quantitative data and this was then triangulated with an international peer group to arrive at certain conclusions. The Delphi Technique was then employed to achieve population consensus on the findings.Results and conclusion: It was found that, in order to implement a policy such as local content without any negative welfare effects, the host economy had to show certain pre-existing conditions. Because South Africa does not hold all supportive pre-conditions, the impact and effect of LCRs have not been optimal, and it has not been found to be a sustainable mechanism to continue using indefinitely. The pricing of renewable energy was also found to be higher due to local content and such pricing is passed on to the energy consumer. The welfare created for South Africa, which should be in a trade-off for the creation of jobs and manufacturing, is therefore diminished and coupled with unsustainability and potential manipulation of the system, the country does not seem to be benefitting as it should be from this specific application of a local content policy.


2016 ◽  
Vol 27 (4) ◽  
pp. 1 ◽  
Author(s):  
Anton Eberhard ◽  
Raine Naude

The South African Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) is a competitive tender process that was launched to facilitate private sector investment into grid-connected renewable energy (RE) generation. It has been an undisputed success in terms of capacity, investment and price outcomes. Since 2011 a total of 6,328 Megawatts of wind, solar PV and other RE generation capacity has been procured, amounting to USD 20.5 billion in investment. Bid tariffs have fallen sharply over the course of the programme and the most recently awarded projects are amongst the lowest priced grid-connected RE projects in the world. Considering South Africa's success in achieving more investment via Independent Power Producers (IPPs) in 4 years than in the rest of Sub-Saharan Africa over the past 25, the REIPPPP's design and management is likely to be of interest to policymakers in African (and other developing) countries. This paper thus provides a comprehensive review of the programme’s tender documentation, implementation, and outcomes to date. Together with supporting research, this analysis has been used to develop a set of high-level lessons intended to facilitate the roll out of similar RE IPP competitive tender programmes in other emerging markets.  


2017 ◽  
Vol 28 (1) ◽  
pp. 63 ◽  
Author(s):  
Ric Amansure ◽  
Chris Adendorff

AbstractMulti-sector participation is one of three sub-models that resulted from the splitting of the original model that resulted from the data analysis as part of a thesis entitled ‘A theoretical for successful management of revenue for beneficiary communities of renewable energy companies in South Africa.’ The sub-model provides specific guidance for the multi-sector participation of enterprises, stakeholders, industry experts and community development practitioners in the renewable energy sector to create a pro-active, effective, and relevant decision-making process for achieving success in the management of revenue for beneficiary communities. To address the primary objective, a number of secondary objectives were formulated through the development of a conceptual model consisting of identified variables based on a comprehensive survey of the related literature. By constructing a path diagram between the independent variable and subsequent intervening and dependent variables, appropriate hypotheses were developed. Primary data sourced from an identified national and international population of community management practitioners were collected using an electronic measuring instrument. These data were analysed and tested empirically using structural equation modelling. The determinants that were identified through a review of the literature as elements of multi-sector participation that influences the success of revenue management for beneficiary communities for South African renewable energy companies included the use of outside advice, financial management, support services, and good governance. Keywords: renewable energy, green energy, beneficiary communities, community development, revenue management, socio-economic development, economic development, multi-sector participation


2017 ◽  
Vol 26 (4) ◽  
pp. 1
Author(s):  
Josephine K. Musango ◽  
Alan C. Brent

Technology roadmaps are critical for decisions pertaining to technology development. They have been utilised in the renewable energy sector to assist in filtering alternative technology options in order to support energy policy formulation, energy security and energy independence, among others. However, solar aided power generation is a recent concept and no roadmap has been developed for the technology as yet. This paper thus reviewed the literature related to roadmapping with the aim of understanding the methods and tools that have been utilised in other settings. Informed by the literature, a conceptual framework was developed, which was further utilised for the initial analysis for developing a roadmap for solar aided power generation in South Africa. Generally, it would be beneficial for South Africa to integrate solar aided power generation within its current Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) or the National Treasury Public-Private Partnership (PPP) programme. However, it should be noted that this is only feasible in the short- and medium-term. In the long-term, there is a need to support stand-alone solar thermal technologies.


2017 ◽  
Vol 28 (1) ◽  
pp. 35 ◽  
Author(s):  
Holle L. Wlokas ◽  
Peter Westoby ◽  
Sue Soal

Implementation of large-scale wind, solar and hydro projects in South African communities is intended to contribute to local economic development. Government policy, through the Renewable Energy Independent Power Producer Procurement Prog-ramme (REIPPPP), obliges energy companies to share revenue and ownership with local communities, thus providing renewable energy companies with a significant opportunity to position the industry as a significant contributor to community development and thus to the country’s transformation and development agenda. This investigation draws on policy documents and interview data to establish that the policy’s lack of appreciation for existing community development tradition and frameworks, commonly applied in South African development policy and programmes, has weakened its potential. Furthermore, it theoretically positions the emerging practice employed by the renewables industry in the implementation of the REIPPPP requirements, and outlines how existing academic and practical knowledge about community development and company-community relations can provide guidance and support in building an impactful practice.Keywords: community relations and development, REIPPPP, community benefit, project implementation, social performanceHighlights•    South Africa is implementing a unique version of pro-poor renewable energy policy. •    Industry and local communities and government need to build quality relationships to successfully implement the policy requirements.•    The policy and practice ignores established community development traditions and frameworks.•    Existing knowledge grounded in South African practice and policy experience can guide the sector’s understanding of and vision for development.


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