Thembani

The National Energy Regulator of South Africa (NERSA) has announced the Renewable Energy Feed-In Tariffs (REFITs) for Phase II of the process.  This includes technologies such as CSP trough without storage, large scale PV, biomass, biogas and CSP towers with storage.  

In March this year, NERSA approved REFITs Phase I which covered the following technologies: Wind; Small hydro; Landfill Gas Methane and Concentrated Solar (CSP), Plant Parabolic trough with storage (6 hrs per day).

The approved Renewable Energy Feed-in Tariffs (REFITs) Phase II, are listed below:

Concentrated Solar Power (CSP) trough without storage R/kWh 3.14
Large scale grid connected PV systems(≥ 1 MW) R/kWh 3.94
Biomass solid R/kWh 1.18
Biogas R/kWh 0.96
CSP Tower with storage of 6 hrs per day R/kWh 2.31

The Energy Regulator further approved the following:

  1. that the Feed – In Tariff (FIT) for concentrated photovoltaic (CPV) not be included at this stage due to the high economic cost;
  2. that fossil fuel be allowed for the CSP technology but limited to a maximum of fifteen percent (15%) of the total primary energy input;
  3. that the REFIT PPA together with REFIT guidelines will be revised in six months time to be in line with Government Notice No. R.721 in Government Gazette 32378 Electricity Regulation Act No. 4 of 2006 of 5 August 2009: Electricity Regulations on New Generation Capacity (“the Regulations”);
  4. that the standardised Direct Agreement, Fuel Supply Agreement (FSA), Transmission Connection Agreement (TCA) and Transmission Use of System Agreement (TUOSA) be included as Schedules of the REFIT PPA in the first annual review of the REFIT.

“The approval of the second phase of REFIT is a major milestone in creating an enabling environment for achieving the Government’s 10 000 GWh renewable energy target by 2013 and sustaining growth beyond the target” said Mr Thembani Bukula, Regulator Member Primarily Responsible for Electricity.

The basic economic principle underpinning the feed-in tariffs is the establishment of a tariff (price) that covers the cost of generation plus a "reasonable profit" to induce developers to invest.

The full Decision and Reasons for the Decision are available on the NERSA website www.nersa.org.za.