15-Baker-Wlokas-RE_frontier.pdf (1.25 MB)
South Africa’s renewable energy procurement: a new frontier?
report
posted on 2023-06-08, 20:39 authored by Lucy Baker, Holle Linnea WlokasDespite a continuing electricity crisis from its coal-fired sources, in recent years South Africa has become one of the leading destinations for renewable energy investment. This is thanks to the launch of its renewable energy independent power producers’ programme for which an estimated $14 billion/R168 billion has been committed thus far and approximately 4 GW of utility-scale renewable energy capacity approved. The programme is unique in that it in order for projects to qualify, developers must commit to undertake requirements for community ownership and economic development benefits in a country with gross socio-economic inequality. As the industry facilitated by RE IPPPP continues to develop, however, concerns have arisen including: the extent to which financial returns will leave or benefit the country; that the ownership of the industry is rapidly becoming the domain of large international utilities; and emerging tensions between ‘bankability’ required by banks and investors and the economic benefits and community ownership criteria.
Funding
The Rising Powers, Clean Development and the transition to low carbon energy systems in sub-Saharan Africa; G0966; ESRC-ECONOMIC & SOCIAL RESEARCH COUNCIL; RF150253
History
Publication status
- Published
File Version
- Published version
Publisher
Energy Research CentrePlace of publication
Cape TownDepartment affiliated with
- International Relations Publications
Institution
University of Cape TownFull text available
- Yes