The long lag between the establishment of community trusts that own a portion of the independent power producer (IPP) projects procured through South Africa’s renewables procurement programme and the flow of dividend income into these trusts has been identified in a new research report as a major impediment to the effectiveness of these trusts. The report, produced by Intellidex for FirstRand, estimates the projected dividend flows from projects procured, to date, under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) will be about R27-billion over the 20-year life of the projects. On average, community trusts hold between 9% and 12% equity in these REIPPPP-linked facilities.
