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South Africa’s renewable energy becoming cheaper

Renewable energy ‘getting cheaper’ Business Report, By Londiwe Buthelezi.  May 22 2012 The cost of renewable energy for South African businesses and homes is coming down. Projects chosen in the second bidding window of the renewable energy independent power producers (IPP) programme would offer power at lower prices, the Department of Energy announced yesterday.

The projects had a value of R28.1 billion, with R11.8bn in local content value.

Mike Peo, the head of infrastructure, energy and telecoms at Nedbank
Capital, said that yesterday’s announcement would ease any lingering
doubts regarding the government’s commitment to its integrated
resource plan.

“(The news) sends a clear message to local and international
stakeholders and investors – not to mention the general public – that
the vision of a South Africa powered to a larger extent by renewable
energy is destined to become a reality,” he said…..
A total of 7 059 jobs during construction and 328 jobs during
operations would be created by the projects announced yesterday.

Nine solar photovoltaic (PV) bids were selected with a combined
capacity of 417MW against the department’s allocation for PV of 450MW.

Seven wind projects were selected, representing 563MW against an
allocated 650MW.

The two small hydropower projects chosen would produce 14MW power and
there was one concentrated solar power (CSP) project with 50MW
capacity, fulfilling the 50MW allocation.

These projects, together with those chosen in window one, place South
Africa well ahead of its IPP procurement target. The two bidding
rounds had an allocation of 2 459MW of generation capacity and only 1
166MW remains to be procured in the upcoming three windows.

The department said the average prices offered by the PV developers
fell to 1.7c a kilowatt-hour (kWh) from 2.8c in the first bidding
window. Prices for wind projects fell to 89c a kWh from R1.14. The CSP
prices fell slightly from R2.68 to R2.51 a kWh…..
http://www.iol.co.za/business/business-news/renewable-energy-getting-cheaper-1.1301510

May 23, 2012 - Posted by Christina Macpherson | renewable, South Africa