Being green in South Africa is not easy – IPP delays

SAAEA 25 September 2012.

The government stunned the renewables industry two weeks ago by announcing it would delay the submissiondeadline for Round 3 projects until May 2013 — having originally slated it for 1 October.

While public-sector delays are de rigueur in South Africa, developers were surprised and bewildered by the length of the hold-up…

Meanwhile, Round 1 projects — awarded at the UN climate talks in Durban last December — were supposed to have reached financial close and been handed power-purchase agreements (PPAs) by June. But they also remain in limbo, with the government as yet unable to finalise its own internal approvals.

Industry sources say Round 1 projects, totalling 1.4GW, are unlikely to receive PPAs until late October at the earliest. Round 2 projects — awarded in May — also face delays…