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RENEWABLE ENERGY PROJECTS GET THE GREEN LIGHT

26 October 2012:

RENEWABLE ENERGY PROJECTS GET THE GREEN LIGHT

CAPE TOWN – The South African Photovoltaic Industry Association (SAPVIA) welcomes the notification from the Department of Energy to renewable energy projects providing instructions as to the procedures leading up to financial close for the 18 solar PV projects awarded preferred bidder status in Round 1 of the REIPPP programme.

The DoE’s notification clearly explains the procedure and timing for preferred bidders to execute all outstanding documentation with the Department of Energy, Eskom and their respective financing institutions. The signing will take place on the 5th November at the Department of Energy’s IPP office, in Centurion, Gauteng. The announcement follows approval from the Minister of Finance and the National Treasury to provide the guarantees behind the power purchase agreements to be signed by Eskom.

SAPVIA commends the Department and the South African government for providing the bidders with further clarity on the process and moving ahead with the key next steps in the renewable energy procurement programme.

“This programme forms part of government’s widely publicized R400bn infrastructure development plan and this announcement is a firm indication of South Africa’s intent to implement successful and large scale infrastructure projects,” explains SAPVIA spokesperson, Chris Haw.

“The progression of these projects sends a positive message to foreign investors and potential companies looking to manufacture equipment locally. The entire industry has been anticipating this announcement and we are looking forward to moving ahead with construction now,” Haw adds.

PV makes up 631 out of the 1415MW awarded in the first round of procurement and it is expected that the first plants will provide clean energy to the national grid toward the middle of 2013. When all the Round 1 projects are operational, SAPVIA expects approximately 1 billion kWhs to be supplied by photovoltaic technology per year, supplying energy to the equivalent of 120,000 households.

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