On 7 December 2011, South Africa's Department of Energy announced the results of its first renewable energy capacity tender. The Ministry selected projects for 20-year power purchase agreements (PPAs) from ESKOM based on a model that prioritized local socioeconomic benefits over cost per MWh. This approach resulted in the selection of 634 MW of wind and 782 MW of solar power. Developers are required to obtain financial closure by June 2012 and projects need to be online by 2014 and in 2016 for CSP. Key trends in this On Point include: Bid prices per MWh imply bankable build-out. Local constraints drive foreign players to team up with domestic players. Market structure shakeout anticipated over the coming months.
On 7 December 2011, South Africa's Department of Energy announced the results of its first renewable energy capacity tender. The Ministry selected projects for 20-year power purchase agreements (PPAs) from ESKOM based on a model that prioritized local socioeconomic benefits over cost per MWh. This approach resulted in the selection of 634 MW of wind and 782 MW of solar power. Developers are required to obtain financial closure by June 2012 and projects need to be online by 2014 and in 2016 for CSP. Key trends in this On Point include: