South Africa’s Renewable Energy IPP Procurement Program

By World Bank Publications

This paper explores the South African experience of introducing grid-connected renewable energy by seeking answers to a number of key questions:
1. Why and how did South Africa move from feed-in tariffs to competitive tenders for grid-connected renewable energy?
2. How did the government design and manage the program? What were the distinctive features of these competitive tenders, and how were the bids evaluated?
3. What were the investment and price outcomes of the different bid rounds?
4. Who were the key private sector actors in the various deals? What kinds of financing institutions were involved? Who were the successful sponsors, equipment providers, and engineering, procurement, and construction (EPC) contractors?
5. What were the impacts and trade-offs between prices and economic development outcomes (e.g., local industrial development and employment creation)?
6. What were the key success factors, shortcomings and risks associated with the program?
7. What lessons can the South African program offer to other developing countries?

• Language: English
• Publisher: World Bank Publications
• Release date: Jun 10, 2014

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