Comment emerging from the Renewable Energy Forum in South Africa, on Wednesday, has suggested a largely bullish view of the local renewable-energy sector by investors and project developers, with several applauding the progress of government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), despite delays and criticism of unsupportive or convoluted energy policy.

“I’m very positive and bullish about the REIPPPP. Even though we always have delays, there is always an announcement shortly thereafter and the momentum is there again,” Red Cap Investments MD Mark Tanton remarked.

Noting that the South African renewable-energy market continued to mature, Arup senior engineer Auret Basson told delegates that successes under the REIPPPP had seen feed-in tariffs narrow by over 25% since the first bidding window, with the average price of photovoltaic energy now at R0.79/kWh and wind at R0.62/kWh.

“The REIPPPP has led to market maturity and a competitive, transparent bidding process. The question now remains whether or not we are aligned with international market trends and what we do to further induce competitiveness, streamline approvals and [make the sector] attractive to investors,” he said.

Moreover, Scatec Solar country manager Andrzej Golebiowski attributed the strategic overhaul of his company to South Africa’s renewables programme, noting that the solar developer had, as a result of becoming a successful bidder in the third round of the REIPPPP, relocated its Germany-based office to South Africa to enable greater focus on local project development.

“The South African programme has transformed our company completely and we have a long-term view of the assets in South Africa. While there have been programme delays, we take comfort in the strong intent by government.

“As an industry…we are happy with the recent announcements [regarding South Africa’s energy roadmap] and we believe the country will continue to be a global leader in the renewables space,” he asserted.

The REIPPPP was also creating renewable-energy skills that were being exported to the rest of the world, Golebiowski averred.

Project developer ACWA Power business director Chris Ehlers, whose company had been involved in the development of a 50 MW concentrated solar power plant, in the Northern Cape, added that he had been “impressed” with the country’s renewable-energy programme.

“From my point of view, as a developer, in a market like South Africa, it is important to have a long-term agenda and a commitment from government to not only promote these programmes, [but to] stay committed to them.

“Investors today have lots of choice in emerging markets and it’s important that governments stick to their guns. We know that things along the path may change, but it is important that, fundamentally, things must stay the same,” he said.

Sonnedix country manager Olivier Renon, meanwhile, described the South African renewable-energy market as becoming “increasingly tight” for developers owing to a surge in international interest.

Comments from renewable-energy project developers and investors came shortly after Energy Minister Tina Joemat-Pettersson recently unveiled a “roadmap” for an upscaled and accelerated deployment of independent power producer capacity.

The Minister proposed the addition of 6 300 MW of renewable-energy allocation, over and above what had already been secured over the past four years.