SA president gives clear support for renewables


Brenda Martin

The South African Renewable Energy Council (SAREC) is pleased to note the presidency’s clear support for the country’s Renewable Energy Independent Power Producer’s Procurement Programme (REIPPPP). This globally recognised programme was the initiative of government, and it is fitting that the policy-maker’s vision can continue to be realised.

Industry appreciates the expressed support that key Ministers have lent to the REIPPP programme during the year-long impasse with Eskom. Some of the serious economic effects of the recent pause in South Africa’s renewable power procurement programme such as factory closures and job losses have caused serious hardship for this fledgling industry. We trust that there will now be rapid movement to resolve the impasse in line with the President’s directive.

Renewable power producers have, through the first highly successful rounds of independent power procurement, demonstrated their commitment to invest, to produce power at increasingly lower prices on-budget and on-time, and to build stronger communities where they are located. The industry’s commitment to addressing poverty, inequality and unemployment and the creation of opportunities for youth, is unequivocal.

This president’s leadership can ensure that now much-needed direct and indirect investment and job creation is unlocked. More than R57-billion investment will flow in the short-term and jobs will be created once outstanding power purchase agreements are signed.

By 2014, investment into renewables in South Africa accounted for 84% of all foreign direct investment; a total sum of just under R200-billion. Since 2016, while approximately R57-billion worth of further renewable power investment had been secured under the programme in 2015, this sum has not entered the economy. In addition, up to 15 000 jobs associated with the power procured in 2015, are currently not being realised.

Through six bid windows the REIPPPP achieved the following successes:- 102 projects have been procured; investments of R194-billion (of which R53,4-billion is from foreign investors); 64 projects have signed contracts representing 4006 MW capacity of which 3051 MW was online (including early operation) as at 17 January 2017; substantial jobs for South African citizens have been created (of which more than 47% are for youth); socio-economic development initiatives have been initiated in local communities; and a green-industry has started to develop to the point that some manufacturers have become exporters of renewable energy plant components; and technicians are being trained at global standard ensuring that young graduates can service both the domestic and international market.

Contact Brenda Martin, SAREC, Tel 011 214-0660,


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