IPP procurement programmes a powerful tool and investor confidence cannot be understated
A number of factors are causing international investors concern and need to be clearly addressed
I was privileged to have been a part of the team advising the independent power production (IPP) office back in 2011 before the renewable energy independent power producer procurement programme (REIPPPP) was launched, and I remember the anxiety that existed around whether many bidders would sign up to participate in the programme. Since then, we have witnessed in excess of 100 large scale renewable energy projects successfully procured under five bidding rounds of REIPPPP (including bid window 3.5) featuring significant tariff reductions from round to round. How did this happen? In my view, it was because SA created a clear procurement plan in the form of the integrated resource plan 2010, making provision for the procurement of 17,800MW of electricity from renewable energy sources by 2030. Second, government created a well-designed and transparent procurement process with key risks mitigated and third, the forces of a competitive market exerted on the sponsors of and lenders to the...
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