Renewable energy gathers steam in South Africa

David Richard Walwyn and Alan Colin Brent

Renewable and Sustainable Energy Reviews, 2015, vol. 41, issue C, 390-401

Abstract: South Africa׳s Renewable Energy Independent Power Producers Procurement Programme (the REI4P) is an extensive initiative to install 17.8GW of electricity generation capacity from renewables – wind, solar, biomass, biogas and hydropower – over the period 2012–2030. Although at the outset the REI4P seemed an expensive option, designed only to deflect criticism of South Africa׳s high carbon footprint and excessive dependence on coal-based electricity generation, the escalating costs of the latter, the rapidly falling costs of photovoltaic and wind power, and the increasingly competitive bidding process of the REI4P have changed this prospect. At the conclusion of round three, the weighted cost of energy has reached a 23% discount to the cost of new coal-based generation and a 28% discount to global renewable energy prices. The bidders׳ commitments to local employment creation have similarly increased from 11 to 18jobs/MW. The programme is now well placed to deliver on a broad range of objectives, including regional development and black economic empowerment. However, maximum benefit from the REI4P will not be secured without some revision to aspects of the bidding and procurement process. More specifically, the local content provisions need to be tightened to drive higher levels of local manufacturing.

Keywords: Renewable energy; Learning curve; Localisation; South Africa; Energy policy (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1364032114007254
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:rensus:v:41:y:2015:i:c:p:390-401

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic
http://www.elsevier. ... 600126/bibliographic

DOI: 10.1016/j.rser.2014.08.049

Access Statistics for this article

Renewable and Sustainable Energy Reviews is currently edited by L. Kazmerski

More articles in Renewable and Sustainable Energy Reviews from Elsevier
Bibliographic data for series maintained by Catherine Liu ().