The Department of Energy (DoE) says it is about to publish the updated Integrated Resource Plan (IRP) having just signed the outstanding power producer agreements with independent power producers. These 27 new projects constitute the biggest IPP procurement by the Department of Energy to date, representing a total of R56-billion of investment and about 2300 MW of generation capacity to be added to the grid over the next five years, Zulu added.
Speaking at the sixth annual Africa Power Roundable at Webber Wentzel’s offices in Sandon recently, Thabane Zulu, the DoE’s director general (DG), said that the signing of the 27 outstanding projects, which had been procured under the Renewable Energy Independent Power Producer Procurement Programme’s (REIPPPP’s) Bid Windows 3.5 and 4, created policy certainty within the energy sector in South Africa and the Southern African Development Community (SADC) region. The updated Integrated Resource Plan (IRP), will be published soon, he confirmed.
By signing of these agreements, the DoE is not only confirming government’s commitment to renewable energy, Zulu said, but is also cementing a solid partnership with the private sector in the generation of electricity while pursuing its energy transition objectives for the future.
Although the private sector’s investment focus has been the generation of electricity to date, further opportunities exist in the refurbishment of electricity distribution infrastructure. Zulu said that the DoE will, in the current period, introduce programmes to encourage private sector investment within the distribution of electricity.
South Africa has committed, together with 195 other countries around the world, to the Paris Agreement for the reduction of CO2 emissions. It also makes South Africa part of the ever- and fast-changing world of renewable energy. This commitment, Zulu said, comes with certain conditions related to the funding of clean energy projects. South Africa’s desire is to become an exporter of products and skills.
According to Zulu, to demonstrate the DoE’s commitment to the creation of a conducive investment environment within the energy sector, the minister of energy, Jeff Radebe, has promised to provide an enabling environment for a thriving energy sector, making electricity affordable for everyone. This, he said, will be achieved by processing the IRP and certain legislation such as the National Energy Regulator Act and Electricity Regulation Act.
Source: EE plublishers