When the Fieldstone Africa Renewables Index (FARI) was introduced, South Africa was the leading country on the continent in terms of its renewable energy programme. The index ranks national markets in terms of current suitability to invest time and capital to achieve successful renewable projects.
However, the country’s reputation and position on the index began to slip owing to a refusal by energy utility Eskom to sign further power purchasing agreements (PPAs) with independent power producers (IPPs).
PPAs for IPP projects that were selected in rounds 4 and 4.5 of the government’s Renewable Energy Independent Power Produce Procurement Programme (REIPPPP), have remained unsigned for several months, seriously denting investor confidence in what was internally recognised as a highly successful programme.
“This has changed somewhat over the last two months, with President Jacob Zuma announcing in his State of The Nation address, in February, that the PPAs will be signed.