Energy Procurement Program Helps South Africa Diversify Power Sources

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Researched by Industrial Info Resources (Sugar Land, Texas)--South Africa relies heavily on coal for its energy needs, but the nation is seeking ways to diversify its energy mix as its coal-fired fleet ages. South Africa aims to introduce natural gas and renewables, including solar power, into the mix.

To help diversify its energy basket, South Africa has adopted the Renewable Energy IPP Procurement Programme (REIPPPP), which uses a competitive tender process that is designed to promote private-sector investment in grid-connected renewable projects. Launched in 2011, the government program is aimed at bringing additional megawatts onto the country's electricity system through private sector investments in renewable power.

In October last year, the South African government selected 25 renewable projects, capable of generating more than 2.5 gigawatts (GW), in its procurement program.

Industrial Info is tracking four solar photovoltaic projects, worth US$360 million, that are tied to the REIPPPP. The projects have a combined capacity of 300 MW. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a list of detailed project reports.

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