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Renewable energy market’s perspective on SA’s budget speech 2021

Renewable energy market’s perspective on SA’s budget speech 2021

As the impact of COVID-19 continues to be felt across South Africa, it was only right that Finance Minister Tito Mboweni balanced addressing the short-term economic challenges with a prudent approach to addressing the long-lasting structural challenges that face the country.

“Energy security is a fundamental building block, necessary to achieving our collective ambition of higher economic growth and employment levels,” says COO of solar and PV industry body, the SA Photovoltaic Industry Association (SAPVIA) Niveshen Govender.

He added: “We [SAPVIA] welcome the Minister’s recognition of the contribution that the private sector will play in restarting the engines of sustainable growth and stands ready to support the transformation of our energy infrastructure.

The budget speech stated that three energy projects have been gazetted, which will be supported through private sector investment of some R52.4 billion [$3.470 billion].

“These projects will create an estimated 2,569 megawatts of electricity generating capacity, which will alleviate electricity supply constraints; reduce the use of diesel-based peaking electrical generators and support broad-based black economic empowerment initiatives, including ownership and localisation,” says Govender.

The State of the Nation Address (SONA) by President Ramaphosa additionally made mention of the imminent roll-out of the Renewable Energy Independent Power Producers Procurement Programme (REIPPPP) bid window 5 as well as bid window 6.

Govender says the solar PV industry eagerly anticipates execution on this commitment from the President.

“In order to facilitate cheaper power coming online as rapidly as possible, SAPVIA strongly supports the implementation of technology-specific, nuanced procurement programmes based on long-term capacity requirements,” the COO clarified.

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Source: EsiAfrica

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