Renewable feed-in tariffs announced

In a much anticipated move, NERSA has approved feed-in tariffs for renewable energy that will encourage investment by private power producers.

“The approved REFIT guidelines will create an enabling environment for achieving the government’s 10,000 GWh renewable energy target by 2013 and sustaining growth beyond the target,” Thembani Bukula, regulator member for electricity regulation, said in a statement.

The following tariffs have been agreed for South Africa:

• R1.25 for each killowatt hour produced from wind,
• R0.94 for the same from hydro,
• R0.90 rand for electricity from landfill gas and
• R2.10 for power from concentrated solar.

These rates are significantly higher than the R.60 – R0.74 range proposed in a December ’08 consultation paper.

According to NERSA the tariff will be reviewed every year for the first five years and every three years after that. Tariffs will only apply to new projects.