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Advantages And Disadvantages Of Reippp

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The rationale for selecting these two countries was to provide a diverse array of examples where the competitive bidding scheme had been used in Africa that will provide a syllabus of learning for a country such as Nigeria.
The South African Renewable Energy Independent Power Producer Procurement Programme (REIPPP)

Background
Power planning after the apartheid has not been the sole responsibility of Eskom, which control the entire value chain of electric power in South Africa. Formal planning system presently mandates the Department of Energy to produce an electricity plan (Integrated Resource Plan – IRP). It is based on IRP that the Minister of Energy issues periodic determinations regarding how much new power generation is needed, and from which sources the power would be developed. The National Energy Regulator of South Africa (NERSA) can only licence new capacity within the bounds set by these ministerial …show more content…

The crux behind the newly adopted methodology is to promote competition with a view of procuring cost-efficient new capacity.

REIPPP programme since its inception has been implemented in three phases of auctions. Through these phases, South Africa has witnessed an increase in the deployment of renewable energy, while prices have dropped significantly. In the annual reports on global renewable energy investment issued by the United Nations Environment Programme (UNEP) and Bloomberg New Energy Finance (BNEF), South Africa went from being described as a “disappointment” in 2011 to being called a “runaway star” and one of the top 10 investor countries in renewable energy in 2012, with a total investment in the first round of auctions amounting to $5.7B, up from virtually zero. South Africa was even proclaimed to be the world’s most attractive emerging solar market in

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