As the custodian of security of energy supply for South Africa, the Department of Energy’s has since 2011, already procured 6,4GW of wind energy.
Wind energy is procured using the “Renewable Energy Independant Power Producers’ Programme (REIPPP) which is a tender process. Consisting of “Rounds”, bidders with the lowest tariff and most competitive Economic Development score with some R91,1bn was already committed to various development initiatives under the REIPPPP [DOE,2016].
Power producers are awarded a 20-year Power Purchase Agreement (PPA) with Eskom (the state-owned utility) as the Off-taker which the South African National Treasury has fully underwritten.
By September 2016, the Country had benefitted from some R53.2bn in foreign direct investment committed to wind energy from foreign investment, making a strong case for continued Public private partnership to grow the sector.