Renewable Energy Independent Power Producer Procurement Programme Research Articles

Auctioning a ‘just energy transition’? South Africa’s renewable energy procurement programme and its implications for transition strategies

ABSTRACT Clean energy is going transnational. Following the COP21 UN Climate Change Conference in December 2015, a roll-out of clean energy schemes in the global South is fostering a global energy transition. One such case is South Africa, where a policy innovation – the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) – was introduced in 2011. While REIPPPP seems to be a success story in terms of renewable energy capacity, it is unclear how the instrument is shaping the overall course of South Africa’s green transformation regarding the influence of transnational actors, participation in local ownership, and socio-economic benefits. Based on expert interviews and empirical process tracing of the renewable energy projects during the five bidding rounds of REIPPPP (2011–2016), the article analyses the design and effects of REIPPPP and discusses its implications for transition strategies, such as a ‘just transition’.

An assessment of the factors that influence the successes and failures of independent power producer projects

The progression of the renewable energy independent power producer procurement programme (REIP) in South Africa is under enormous risk owing to regulatory frameworks. A literature search is conducted to establish international best practice for renewable energy (RE) project implementation. A mixed methods research study is conducted to quantify factors that have an influence on performance of REIP. This knowledge is adopted to evaluate a relative status of the South African REIP initiatives. Secondary data is analysed for the five years of the renewable energy programme's existence in South Africa, comparing leading and follower countries. This paper provides a review of the progress with renewable energy programme. The research also provide recommendations for continuous improvement in order for independent power producers (IPP's) to enhance competitiveness. According to this analysis and South Africa's gross domestic product (GDP), the investment in renewable energy programme is close to parity with leading economies such as Germany.

An assessment of the factors that influence the successes and failures of independent power producer projects

The progression of the renewable energy independent power producer procurement programme (REIP) in South Africa is under enormous risk owing to regulatory frameworks. A literature search is conducted to establish international best practice for renewable energy (RE) project implementation. A mixed methods research study is conducted to quantify factors that have an influence on performance of REIP. This knowledge is adopted to evaluate a relative status of the South African REIP initiatives. Secondary data is analysed for the five years of the renewable energy programme's existence in South Africa, comparing leading and follower countries. This paper provides a review of the progress with renewable energy programme. The research also provide recommendations for continuous improvement in order for independent power producers (IPP's) to enhance competitiveness. According to this analysis and South Africa's gross domestic product (GDP), the investment in renewable energy programme is close to parity with leading economies such as Germany.

CONCENTRATED SOLAR POWER (CSP) INNOVATION ANALYSIS IN SOUTH AFRICA

South Africa aims to generate 42 per cent of its electricity from renewable energy technology sources by 2030. Concentrating solar power (CSP) is one of the major renewable energy technologies that have been prioritised by South Africa, given the abundant solar resources available in the region. Seven CSP plants have been, or are being, built; three of them are already connected to the national grid. However, the impacts of this technology on South African research, development, and innovation have not been investigated to date. This paper thus analyses the CSP technologies in South Africa in terms of the existing technology adoption models and diffusion strategies, used by government and its agencies, to improve the development and deployment of these technologies. It is found that CSP has been treated generally like other renewable energy technologies through the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), although a tariff plan for CSP plants of the future has been made. No specific technology diffusion or adoption model for CSP was found; so this paper explores how it can be developed.

A roadmap framework for solar aided power generation in South Africa

Technology roadmaps are critical for decisions pertaining to technology development. They have been utilised in the renewable energy sector to assist in filtering alternative technology options in order to support energy policy formulation, energy security and energy independence, among others. However, solar aided power generation is a recent concept and no roadmap has been developed for the technology as yet. This paper thus reviewed the literature related to roadmapping with the aim of understanding the methods and tools that have been utilised in other settings. Informed by the literature, a conceptual framework was developed, which was further utilised for the initial analysis for developing a roadmap for solar aided power generation in South Africa. Generally, it would be beneficial for South Africa to integrate solar aided power generation within its current Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) or the National Treasury Public-Private Partnership (PPP) programme. However, it should be noted that this is only feasible in the short- and medium-term. In the long-term, there is a need to support stand-alone solar thermal technologies.

A roadmap framework for solar aided power generation in South Africa

Technology roadmaps are critical for decisions pertaining to technology development. They have been utilised in the renewable energy sector to assist in filtering alternative technology options in order to support energy policy formulation, energy security and energy independence, among others. However, solar aided power generation is a recent concept and no roadmap has been developed for the technology as yet. This paper thus reviewed the literature related to roadmapping with the aim of understanding the methods and tools that have been utilised in other settings. Informed by the literature, a conceptual framework was developed, which was further utilised for the initial analysis for developing a roadmap for solar aided power generation in South Africa. Generally, it would be beneficial for South Africa to integrate solar aided power generation within its current Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) or the National Treasury Public-Private Partnership (PPP) programme. However, it should be noted that this is only feasible in the short- and medium-term. In the long-term, there is a need to support stand-alone solar thermal technologies.

Learning from the literature on community development for the implementation of community renewables in South Africa

Implementation of large-scale wind, solar and hydro projects in South African communities is intended to contribute to local economic development. Government policy, through the Renewable Energy Independent Power Producer Procurement Prog-ramme (REIPPPP), obliges energy companies to share revenue and ownership with local communities, thus providing renewable energy companies with a significant opportunity to position the industry as a significant contributor to community development and thus to the country’s transformation and development agenda. This investigation draws on policy documents and interview data to establish that the policy’s lack of appreciation for existing community development tradition and frameworks, commonly applied in South African development policy and programmes, has weakened its potential. Furthermore, it theoretically positions the emerging practice employed by the renewables industry in the implementation of the REIPPPP requirements, and outlines how existing academic and practical knowledge about community development and company-community relations can provide guidance and support in building an impactful practice.Keywords: community relations and development, REIPPPP, community benefit, project implementation, social performanceHighlights• South Africa is implementing a unique version of pro-poor renewable energy policy. • Industry and local communities and government need to build quality relationships to successfully implement the policy requirements.• The policy and practice ignores established community development traditions and frameworks.• Existing knowledge grounded in South African practice and policy experience can guide the sector’s understanding of and vision for development.

The South African Renewable Energy Independent Power Producer Procurement Programme: A Review and Lessons Learned

The South African Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) is a competitive tender process that was launched to facilitate private sector investment into grid-connected renewable energy (RE) generation. It has been an undisputed success in terms of capacity, investment and price outcomes. Since 2011 a total of 6,328 Megawatts of wind, solar PV and other RE generation capacity has been procured, amounting to USD 20.5 billion in investment. Bid tariffs have fallen sharply over the course of the programme and the most recently awarded projects are amongst the lowest priced grid-connected RE projects in the world. Considering South Africa's success in achieving more investment via Independent Power Producers (IPPs) in 4 years than in the rest of Sub-Saharan Africa over the past 25, the REIPPPP's design and management is likely to be of interest to policymakers in African (and other developing) countries. This paper thus provides a comprehensive review of the programme’s tender documentation, implementation, and outcomes to date. Together with supporting research, this analysis has been used to develop a set of high-level lessons intended to facilitate the roll out of similar RE IPP competitive tender programmes in other emerging markets.

Utility-scale PV power and energy supply outlook for South Africa in 2015

In South Africa, the projects for the first two rounds of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) have reached financial closure, and construction and commissioning has commenced, on all of the twenty-seven PV sites. The question remains as to what can be expected from these PV facilities in 2015 should all of them be fully operational. The objective of the paper was then to analyse the power and energy supply outlook from an annual time series simulation of all approved utility-scale PV facilities. The total amount of delivered energy, if the solar resource profile in 2015 will be similar to that of 2010, will be 1906 GWh. This amounts to just below 1% of the total (net) electricity generated by Eskom, the national utility, in 2012. The cumulative maximum power will almost reach 900 MW. Thus, all of the PV projects will represent up to a maximum of 2% of Eskom's net rated capacity. Of importance to policy- and decision-makers, is that the supplied power and energy performances are well within the best practice spinning reserve of the national grid. As a consequence, the intermittencies of these facilities are of lesser importance.

INVESTIGATING THE FINANCIAL CLOSE OF PROJECTS WITHIN THE SOUTH AFRICAN RENEWABLE ENERGY INDEPENDENT POWER PRODUCER PROCUREMENT PROGRAMME

South Africa may have a generation capacity shortage in the near future. The Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) is playing an important role in creating generation capacity to fulfil future demand requirements. This investigation focused primarily on identifying the problems that have been experienced with projects in the programme (e.g., to reach financial close). The research showed that there is good alignment between the requirements in the request for proposals and those from financiers. Several issues caused delays in projects reaching financial close. However, respondents to this study indicated that the REIPPPP is well thought out and that several problems are being addressed successfully.