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South African PV industry buoyed by Minister Kubayi's IPP announcement

Submitted by South African Photovoltaic Industry Association (SAPVIA) on 1 September 2017
Minister Mmamaloko Kubayi
The South Africa Photovoltaic Industry Association (SAPVIA) welcomes the announcement by the Minister of Energy, Ms Mmamoloko Kubayi, made today that the RE IPP Programme will move forward and the outstanding PPA’s for Round 3.5 and 4 will be signed on the 28th of October 2017. This will bring much needed investment, secure current jobs and manufacturing investments in the sector, and create new jobs and opportunities for communities surrounding these projects.

By confirming dates for the financial close of the Round 3.5 and Round 4 projects, Government is sending out a signal that indeed, as President Zuma stated last week “South Africa is open for business”. The delays in the programme have endangered long term investor confidence, investment and more specifically job creation and retention in this market.

The signing of the PPAs will fast track the delivery of employment opportunities, local manufacturing opportunities, social development programmes and the benefits of community ownership, all of which are common features of all REIPPPP projects.

These announcements send a positive signal to the market that the Government is committed to ensuring renewable energy plays its part in the future energy mix in a manner that ensures economic transformation of the sector, and ultimately broader economic participation of South Africans in renewable energy.

SAPVIA has had the opportunity to engage with the Minister and her DoE team positively over the last month, and we welcome the forward movement in the RE IPP Programme. We are committed to working together with the department to address issues around transformation in the sector and agree that the IRP and IEP need to be concluded.

SAPVIA remains committed to engaging with the Government, Ministry and DoE in building an energy future that is participatory, transformational and that delivers benefits to the South African economy and its people.

The signing of the PPAs will fast track the delivery of employment opportunities, local manufacturing opportunities, social development programmes and the benefits of community ownership, all of which are common features of all REIPPPP projects.

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