Associations representing more than 90 potential wind and solar energy developers have called for a "frank" consultation with government on the proposed procurement process for South Africa's first renewables capacity, as well as assurances that any proposed divergence from the renewable energy feed-in tariff (Refit) system will be temporary.

Government has confirmed, although so far not formally, that it plans to abandon the Refit for the purchase of the first 1 025 MW of renewables capacity to be introduced by 2013 and include an element of price competition in its evaluation of the bids. It is understood that the National Energy Regulator of South Africa (Nersa) has concurred with the procurement model suggested, but has raised some reservations in a letter to Energy Minister Dipuo Peters.

The late nature of the change has been questioned, given that Refit was confirmed back in 2009, as have government’s motives for proposing to move away from a system that has supported the development of nascent renewables industries in a number of other countries.

In a joint open letter to policymakers, the South African Wind Energy Association, the South African Photovoltaic Association and the Southern Africa Solar Thermal and Electricity Association, which collectively represent more than 90 member companies, said new consultations were necessary to enable the industry to understand the reasons for the "temporary" divergence away from Refit, as well as to ensure the interim revised procurement process is "workable".

It had been speculated that the request for proposals would be issued on July 15, but no document was forthcoming.

"We request that whatever procurement approach is followed the Department of Energy (DoE), the National Treasury and Nersa provide clarity prior to the issuance of the procurement documentation on the allocations, in total and by technology, of renewable energy to be procured and licensed and in which time period," they said.

They also urged government and the regulator to make public their deliberations and timeframes and to engage in “frank and open discussions with stakeholders to remove uncertainty and conjecture from the process”.

HYBRID MODEL?

The associations’ argued that such certainty was also needed to support what could be a R350-billion investment in renewables developments over the coming 20 years, in line with the capacity set aside for such solutions in the Integrated Resource Plan, which was promulgated earlier this year.

Engineering News Online was unable to secure an immediate response from the DoE. However, Trade and Industry Minister Dr Rob Davies, whose department is promoting green industries, said he anticipated that the tender would be released soon and would be a “hybrid” between a pure Refit and a competitive bidding process.

He said that government’s intention was to ensure investment of a sufficient scale to support the localisation of renewable energy solutions, or components thereof, both for use in the domestic programmes, as well as for sale on the export market.

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