In South Africa, the re-imagined industrial policy
has identified the green economy,
which includes renewables,
as a sector that will play a key role
in the industrialization of the economy
and contribute to the economic reconstruction
and recovery plan post the Covid-19 pandemic.
Specifically, the commitment to the acceleration
of the implementation of the Integrated Resource Plan
(with its target of 17.7 GW of wind
and 8.2 GW of solar PV installed by 2030).
I would say so. Continuous regulatory reform is taking place
in order to encourage and deploy new renewable energy generation capacity.
As an example,
the recently amended Electricity Regulation on New Generation Capacity,
which will allow municipalities to procure energy and capacity
directly from Independent Power Producers, like ourselves.
The forthcoming Licensing and Exemption Notice
exempts generation facilities of up to 100 MW
from the requirement of applying for
and holding a generation licence.
These developments certainly are favorable for the future deployment
of renewable energy in South Africa.
As an example, the eThekwini metropolitan municipality
recently launched an RFI to procure 400 MW
from IPPs and no doubt other municipalities will soon follow suit,
procuring new generation capacity directly from IPPs.
This bodes well for the industry,
improves prospects of future earning
for future investments in generation capacity
and is sure to spur on economic growth.
New opportunities are also present
in the launching of bid windows 6 and 7 of the REIPPP Program,
which is anticipated by end of 2021 and Q2 2022 respectively.