Municipal power procurement trickier than just getting the go-ahead from Minister

Although national government has opened the door for municipalities to procure electricity from independent power producers (IPPs), a lot of “regulatory ironing out” still needs to happen before power purchase agreements (PPAs) can be signed.

In May last year, the Energy Minister gave permission for the National Energy Regulator of South Africa (Nersa) to licence 500 MW of small-scale embedded generation (SSEG) projects, sized between 1 MW and 10 MW, without the need for the Minister to sign it off.

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Industrial investment will flow if South Africa ‘consistently’ builds 1.6 GW of wind yearly

Leading wind-energy project developers and original equipment manufacturers (OEMs) are convinced that South Africa’s plan to install 1.6 GW of new wind capacity yearly until 2030 is more than sufficient to attract large-scale industrial investment. These captains of industry warn, however, that the country will need to back-up the policy certainty currently being provided by the Integrated Resource Plan 2019 (IRP2019) with consistent implementation.
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Lower renewables costs driving up demand – Windaba panel

Renewables remain the lowest-cost source of new power generation in most parts of the world, with prices continuing to decline and making it a promising sector for development in most countries.

The price of onshore wind, for example, declined from $86/MWh in 2009 to $53/MWh in 2019, representing a 40% decline in the last ten years, states Danish Energy Agency energy adviser Andrea Isidori.

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South Africa’s cities to switch to solar as power monopoly ends

South Africa’s biggest cities are preparing to source their own power after the energy ministry this month approved letting them wean themselves off the state utility that’s subjected cities to outages for the past 13 years.
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