South Africa's Renewable Energy IPP Procurement Program : Success Factors and Lessons
South Africa occupies a central position in the global debate regarding the most effective policy instruments to accelerate and sustain private investment in renewable energy. In 2009, the government began exploring feed-in tariffs (FITs) for renew...
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| Format: | Publications & Research |
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World Bank Group, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/05/19768310/south-africas-renewable-energy-ipp-procurement-program-success-factors-lessons http://hdl.handle.net/10986/20039 |
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okr-10986-200392021-04-23T14:03:52Z South Africa's Renewable Energy IPP Procurement Program : Success Factors and Lessons Eberhard, Anton Kolker, Joel Leigland, James AVERAGE TARIFF BASE PRICE BENEFICIARIES BID BIDDING PROCESS BIOGAS BIOMASS CAPACITY BUILDING COMMERCIAL LENDERS COMPETITIVE TENDERS CONVERSIONS COPYRIGHT DEBT DEBT FINANCING DEVELOPING COUNTRIES DIESEL E-MAIL ECONOMIC DEVELOPMENT ELECTRICITY ELECTRICITY PRICES ELECTRICITY SUPPLY ENERGY SOURCES EQUIPMENT EQUIPMENT SUPPLIERS EXCHANGE RATE FINANCIAL EVALUATION GROUP GUARANTEES ID INFRASTRUCTURE DEVELOPMENT INITIAL DEBT INTERNATIONAL BANK JOB CREATION LENDER LENDERS LICENSES LIQUIDITY MANUFACTURING MATERIAL ONSHORE WIND PHOTOS PRIVATE SECTOR PROCUREMENT PROJECT MANAGEMENT QUERIES RENEWABLE ENERGY RENEWABLE ENERGY POLICY RESULTS SHAREHOLDERS SOLAR POWER TARGETS TELEPHONE TENDER PROCESS TRANSMISSION WIND WIND ENERGY WIND FARM South Africa occupies a central position in the global debate regarding the most effective policy instruments to accelerate and sustain private investment in renewable energy. In 2009, the government began exploring feed-in tariffs (FITs) for renewable energy, but these were later rejected in favor of competitive tenders. The resulting program, now known as the Renewable Energy Independent Power Producer Procurement Program (REIPPPP), has successfully channeled substantial private sector expertise and investment into grid-connected renewable energy in South Africa at competitive prices. To date, a total of 64 projects have been awarded to the private sector, and the first projects are already on line. Private sector investment totaling US$14 billion has been committed, and these projects will generate 3922 megawatt (MW) of renewable power. Prices have dropped over the three bidding phases with average solar photovoltaic (PV) tariffs decreasing by 68 percent and wind dropping by 42 percent, in nominal terms. Most impressively, these achievements all occurred over a two-and-a-half year period. Finally, there have been notable improvements in the economic development commitments, primarily benefiting rural communities. One investor characterized REIPPPP as 'the most successful public-private partnership in Africa in the last 20 years.' Important lessons can be learned for both South Africa and other emerging markets contemplating investments in renewables and other critical infrastructure investments. 2014-09-10T20:43:01Z 2014-09-10T20:43:01Z 2014-05 http://documents.worldbank.org/curated/en/2014/05/19768310/south-africas-renewable-energy-ipp-procurement-program-success-factors-lessons http://hdl.handle.net/10986/20039 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Group, Washington, DC Publications & Research Publications & Research :: Working Paper Africa South Africa |
| repository_type |
Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AVERAGE TARIFF BASE PRICE BENEFICIARIES BID BIDDING PROCESS BIOGAS BIOMASS CAPACITY BUILDING COMMERCIAL LENDERS COMPETITIVE TENDERS CONVERSIONS COPYRIGHT DEBT DEBT FINANCING DEVELOPING COUNTRIES DIESEL ECONOMIC DEVELOPMENT ELECTRICITY ELECTRICITY PRICES ELECTRICITY SUPPLY ENERGY SOURCES EQUIPMENT EQUIPMENT SUPPLIERS EXCHANGE RATE FINANCIAL EVALUATION GROUP GUARANTEES ID INFRASTRUCTURE DEVELOPMENT INITIAL DEBT INTERNATIONAL BANK JOB CREATION LENDER LENDERS LICENSES LIQUIDITY MANUFACTURING MATERIAL ONSHORE WIND PHOTOS PRIVATE SECTOR PROCUREMENT PROJECT MANAGEMENT QUERIES RENEWABLE ENERGY RENEWABLE ENERGY POLICY RESULTS SHAREHOLDERS SOLAR POWER TARGETS TELEPHONE TENDER PROCESS TRANSMISSION WIND WIND ENERGY WIND FARM |
| spellingShingle |
AVERAGE TARIFF BASE PRICE BENEFICIARIES BID BIDDING PROCESS BIOGAS BIOMASS CAPACITY BUILDING COMMERCIAL LENDERS COMPETITIVE TENDERS CONVERSIONS COPYRIGHT DEBT DEBT FINANCING DEVELOPING COUNTRIES DIESEL ECONOMIC DEVELOPMENT ELECTRICITY ELECTRICITY PRICES ELECTRICITY SUPPLY ENERGY SOURCES EQUIPMENT EQUIPMENT SUPPLIERS EXCHANGE RATE FINANCIAL EVALUATION GROUP GUARANTEES ID INFRASTRUCTURE DEVELOPMENT INITIAL DEBT INTERNATIONAL BANK JOB CREATION LENDER LENDERS LICENSES LIQUIDITY MANUFACTURING MATERIAL ONSHORE WIND PHOTOS PRIVATE SECTOR PROCUREMENT PROJECT MANAGEMENT QUERIES RENEWABLE ENERGY RENEWABLE ENERGY POLICY RESULTS SHAREHOLDERS SOLAR POWER TARGETS TELEPHONE TENDER PROCESS TRANSMISSION WIND WIND ENERGY WIND FARM Eberhard, Anton Kolker, Joel Leigland, James South Africa's Renewable Energy IPP Procurement Program : Success Factors and Lessons |
| geographic_facet |
Africa South Africa |
| description |
South Africa occupies a central
position in the global debate regarding the most effective
policy instruments to accelerate and sustain private
investment in renewable energy. In 2009, the government
began exploring feed-in tariffs (FITs) for renewable energy,
but these were later rejected in favor of competitive
tenders. The resulting program, now known as the Renewable
Energy Independent Power Producer Procurement Program
(REIPPPP), has successfully channeled substantial private
sector expertise and investment into grid-connected
renewable energy in South Africa at competitive prices. To
date, a total of 64 projects have been awarded to the
private sector, and the first projects are already on line.
Private sector investment totaling US$14 billion has been
committed, and these projects will generate 3922 megawatt
(MW) of renewable power. Prices have dropped over the three
bidding phases with average solar photovoltaic (PV) tariffs
decreasing by 68 percent and wind dropping by 42 percent, in
nominal terms. Most impressively, these achievements all
occurred over a two-and-a-half year period. Finally, there
have been notable improvements in the economic development
commitments, primarily benefiting rural communities. One
investor characterized REIPPPP as 'the most successful
public-private partnership in Africa in the last 20
years.' Important lessons can be learned for both South
Africa and other emerging markets contemplating investments
in renewables and other critical infrastructure investments. |
| format |
Publications & Research |
| author |
Eberhard, Anton Kolker, Joel Leigland, James |
| author_facet |
Eberhard, Anton Kolker, Joel Leigland, James |
| author_sort |
Eberhard, Anton |
| title |
South Africa's Renewable Energy IPP Procurement Program : Success Factors and Lessons |
| title_short |
South Africa's Renewable Energy IPP Procurement Program : Success Factors and Lessons |
| title_full |
South Africa's Renewable Energy IPP Procurement Program : Success Factors and Lessons |
| title_fullStr |
South Africa's Renewable Energy IPP Procurement Program : Success Factors and Lessons |
| title_full_unstemmed |
South Africa's Renewable Energy IPP Procurement Program : Success Factors and Lessons |
| title_sort |
south africa's renewable energy ipp procurement program : success factors and lessons |
| publisher |
World Bank Group, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/05/19768310/south-africas-renewable-energy-ipp-procurement-program-success-factors-lessons http://hdl.handle.net/10986/20039 |
| _version_ |
1764444212851376128 |