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South Africa finally signs 27 outstanding

renewable PPAs
South Africa’s utility-scale solar industry is finally back on track
following the signing of 27 renewable energy power purchase
agreements (PPAs).

April 4, 2018 Becky Beetz

After a farcical amount of toing and froing, the 27 outstanding


renewable PPAs under the country’s Renewable Energy
Independent Power Producer Procurement Programme
(REIPPPP) have today been signed.

Overall, the PPAs represent 2.3 GW of generation capacity,


which is expected to be added to the grid over the next five years,
58,000 new jobs, and an investment of R56 billion (around
US$4.7 billion), said South African Energy Minister, Jeff Radebe.

The Northern Cape will see the majority of the investment, with
15 wind, solar PV and CSP projects planned. A further four PV
projects will be installed in the North West Province. A total of
12 PPAs are for solar PV projects totaling 813 MW.

“The localisation potential of these 27 new projects is substantial.


Our estimate is that for the solar PV projects, around 2.8 million
solar PV modules would be procured, 600 inverters and 385
transformers,” said Radebe in a speech marking the signing.

He added, “South African manufacturers stand to benefit from


this huge demand given the local content commitments made by
the IPPs.”

In a nod to the current woes of national utility, Eskom, which is


the only entity in the country entitled to buy renewable energy
power under the REIPPPP scheme, Radebe said that energy
regulator Nersa will work with Eskom’s new leadership to
address the challenges currently facing the utility.