The department of energy is taking steps to reduce its most expensive renewable-energy tariffs to share in the financial benefits as developers of early-round projects are starting to renegotiate debt, says Mark van Wyk, head of unlisted investments at Mergence Investment Managers. A spokesman for the department confirmed the move. The tariffs agreed on with government’s independent power procurement (IPP) office for the first rounds of renewable energy projects were far higher than for the later rounds. First-round solar photovoltaic (PV) projects are selling to Eskom at R2.75/kilowatt hour (kWh) and first-round wind projects at R1.14/kWh. In the latest rounds, the tariff for solar PV was 87c/kWh and wind was 69c/kWh.
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