Solar photovoltaic (PV) panel manufacturer Sharp has welcomed the National Energy Regulator of South Africa’s (Nersa’s) consultation paper, which revises the current renewable energy feed-in tariff (Refit) to include, among other technologies, solar PV.

The company noted that, in recent months, Sharp representatives had visited the country, and held discussions with energy industry stakeholders regarding a sufficient solar PV feed-in tariff for South Africa.

The company strongly believed that PVs were an important energy technology for South Africa, not only as it would contribute to energy security in the country using an abundant renewable resource, and reduce dependence on coal-fired power with all its associated environmental effects, but also, that it could stimulate job creation in the economy.

Sharp said that it welcomed and understood the suggested size of PV systems beginning from plants generating more than 1 MW of power, as well as welcoming the suggested tariff of R4,488/kWh, the term of 20 years, and the yearly revision of the Refit.

Sharp governmental policy affairs manager Barbara Rudek noted that a feed-in tariff for PVs, as described in the Nersa consultation paper phase II, would secure financing for PV systems because it would established by law would serve as a guarantee for individuals willing to purchase a PV system, and it would bring foreign project investors into the country.

She added that it encouraged cost reduction as the constant reductions of the tariff for new systems connected to the grid, would put pressure on the PV industry to bring down costs further.

“It also forces the industry to significantly improve performance, because the return on investment depends on the performance of the system and customers will opt for systems with highest return,” said Rudek.

Sharp also said that the company looked forward to the next phase of the Refit in the near future, which it hoped would include small scale solar PV systems with a generation capacity of below 1 MW.

Nersa has published the consultation paper on its website, and this included the additional renewable energy technologies of: concentrated solar power plant without storage; solid biomass; biogas; solar PV systems, large ground or roof-mounted; concentrating PV; and concentrated solar power central tower.

The consultation paper also included a lengthy draft of the power purchase agreement, which renewable energy project developers had been awaiting, before being able to get started with projects.

Written comments on the consultation paper should be submitted to Nersa by August 20, which was also the closing date for interested parties to register to attend the public hearings into the Refit phase two.

The public hearings for Refit phase two were scheduled to take place in September, and the electricity sub-committee would make recommendations to the regulator in October.

Nersa approval of the Refit phase two was expected on October 29, 2009.