The government-default component of the government guarantees extended to the independent power producers (IPPs) that will be selected to build new solar and wind projects under the upcoming seventh bid window (BW7) of South Africa’s programme for the procurement of renewable energy will be reduced from 100% to 80%. IPP Office head Bernard Magoro tells Engineering News that the reduction follows a National Treasury review of the Government Support Framework Agreement, as well as consultations with the market over the past year.
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