South Africa's 'green' energy tariffs
1 April 2009
The National Energy Regulator of South Africa (Nersa) has approved tariff guidelines that it believes will both cover generation costs and ensure a reasonable profit to motivate investors, helping the government to meet its supply target of 10 000 gigawatt hours of "green energy" by 2013.
Nersa released the Renewable Energy Feed In Tariffs (Refit) guidelines in Pretoria on on Tuesday.
"The approved Refit guidelines will create an enabling environment for achieving the government's 10 000 GWH renewable energy targets by 2013 and sustaining growth beyond the targets," Nersa's electricity sub-committee chairman, Thembani Bukula, said at the release.
The four identified renewable energy technologies, and the approximate prices that energy suppliers would pay the renewable energy generators, were: wind (R1.25 per kilowatt hour); small hydro (94 cents/KWH); landfill gas (90 cents/KWH); and concentrated solar (R2.10/KWH).
Bukula said that at this stage the tariffs would not have any impact on the man on the street. "For a normal consumer, the only good is that you will be contributing [to combating] climate change by using energy from renewable energies."
There would be incentives for bigger, multinational companies to use renewable energy.
"If you look at Mercedes Benz and other multinationals, if they can buy ... wind power for instance, at the rate that it is, they get other credits for having cars that have been [manufactured using] green energy."
He said a number of licensee applications and power purchase agreements had been received. These would be looked at and submitted for public debate next week.
Bukula said renewable energy currently accounted for five percent of energy generated by the country. He said Europe's target of 20% by 2020 was also achievable by South Africa.
"We do have the sun, we do have the wind. The target is a target we can get to," he said.
The term of the Refit power purchase agreement had also been extended from 15 to 20 years. It would be reviewed every year for the first-five year period of implementation and every three years thereafter.
Sapa
