The Risk Mitigation Independent Power Producer Procurement Program (RMIPPPP) is a progressive step in South Africa’s energy history and, if successful, could revolutionise the way power is generated and procured in the country, suggests Scatec sub-Saharan Africa GM Jan Fourie. He notes that purely renewables-based projects, like Scatec’, offer economic benefits in that all their costs are embedded in the initial capital expenditure and that no fuel is needed to run the project, meaning that there is no commodity risk and currency risk to government and no carbon tax.
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