South Africa’s IPP procurement model under review amid sustainability concerns

South Africa’s Independent Power Producer Office (IPPO) has confirmed that it is undertaking a comprehensive review of the country’s public procurement framework for independent power producers (IPPs), which has hitherto been dominated by renewable energy. The model was once lauded internationally but is currently facing significant headwinds, with analysis by the University of Cape Town’s (UCT’s) Power Futures Lab showing that of the 14 800 MW tendered since 2020, only 7 343 MW has been awarded, while less than 20% has reached financial close.