They could also undermine a 2030 target of having 42% of energy generation from renewables and SA's bid to move away from coal reliance.

The IRP, SA's 20-year master energy plan, was completed in March 2011.

Energy minister Dipuo Peters recently said the process will only go through competitive tender processes, a move accepted by the National Energy Regulator of SA (Nersa).

Refit was announced by the regulator in 2009 and was hailed as an internationally proven way to quickly build a renewable energy industry.

The system encourages producers of renewable power to come on board by guaranteeing prices.

Happy Masondo, a director at Werksmans Attorneys, said the IRP is a "laudable ideal" for SA to reduce reliance on coal in favour of renewable energy.

"However, the independent power producers who will ultimately be responsible for renewable energy supply are facing a disincentive to invest as a result of delays by Nersa in issuing the updated renewable energy feed-in tariff," she said.

Masondo said instead of providing for competition, the plan would, in fact, stifle it and close out smaller entrants.

"This will ensure that bigger players continue their domination and the delays in signing the IPP (independent power producer) contracts will certainly make the targets a mere dream," Masondo said.

She pointed to a World Economic Forum (WEF) report which blamed the absence of long-term planning for hampering investment in renewable energy, as well as delays in project approval.

The WEF report also decried a lack of experience among decision makers for delays in the development of renewable energy projects.

Jason Schaffler of the Sustainable Energy Society of SA (SESSA) said the organisation supports the WEF findings in terms of the critical role of renewable energy and increased energy efficiency in the Southern African economy.

But he said findings on the grid are misleading as it has been confirmed that the SA electrical network can support large percentages of renewable energy in the supply mix.

"Furthermore, the society is in favour of a renewable energy feed-in tariff as part of a suite of incentives to increase the uptake of renewables in SA. SESSA's experience in the photovoltaic and solar water heating industries in particular shows increasing investment despite ongoing uncertainties.

"Sustainable energy (both on and off-grid, electrical and thermal) furthers economic stability through diversification of energy supply and creates jobs," Schaffler said.

Rainer Nowak, a director at Webber Wentzel, said IPPs faced a disincentive as a result of the government moving away from Refit.

"Thus far, potential wind developers invested some R400-million. A price-competitive tender process may violate the trust on which this investment was made and consequently taint the country's credibility," said Nowak.

"Shifting away from the Refit programme will stall the renewable energy drive and stifle economic growth. The IRP requires in excess of R350-billion in investment into renewable energy in the next 19 years, which translates into over R18-billion a year on average," he said.

Nowak said an apparent lack of co-ordination between the Nersa, the Department of Energy, the National Treasury and the Development Bank of SA has resulted in confusion.

He warned that renewable energies come into competition with large, established companies in the supply chain of nuclear and coal.

"Eskom's financial sustainability is linked to generating the largest income in order to generate profits for Eskom. If Eskom makes decisions based purely on conventional cost comparisons, with no political incentives to change to renewable, coal-fired power stations are likely to remain the 'lowest-cost option' in the short term," he said.   

In the US, renewable energy resources deliver 11% of the country's energy, about as much as nuclear.