The National Energy Regulator of South Africa (NERSA) announced on Tuesday March 31st that the Energy Regulator approved the Renewable Energy Feed-In Tariff (REFIT) Guidelines.
“The approved REFIT Guidelines will
create an enabling environment for achieving Government’s 10 000 GWh
renewable energy target by 2013 and sustaining growth beyond the
target” said Mr Thembani Bukula, Regulator Member for
Electricity
Regulation.
The basic economic principle
underpinning the FITs is the establishment of a tariff (price) that
covers the cost of generation plus a "reasonable profit" to induce
developers to invest.
The Energy Regulator approved REFIT
Guidelines as follows:
- The Feed – in Tariffs (FITs) based on the Levelised Cost of
Electricity, as illustrated in Table 1 below:
Table
1: REFIT Tariffs – 2009 (R/kWh)
| Technology |
Unit |
REFIT
|
| Wind |
R/kWh |
1.25 |
| Small hydro |
R/kWh |
0.94 |
| Landfill gas |
R/kWh |
0.90 |
| Concentrated solar |
R/kWh |
2.10 |
- The term of the REFIT Power Purchase Agreement be twenty (20)
years.
- The REFIT to be reviewed every year for the first five-year
period of implementation and every three years thereafter and the
resulting tariffs will apply only to new projects.
- A Reduction Rate to be excluded from REFIT.
- Carbon revenue from the Clean Development Mechanism (CDM) be
excluded from the REFIT.
- Other REFIT qualifying technologies to be considered for
inclusion in six (6) months time.
- The Renewable Energy (RE) Power Purchase Agency (REPA) to be
housed in Eskom’s SingleBuyer Office.
- Monitoring and Verification to be the responsibility of the
Single Buyer Office.
- The Medium Term Power Purchase Program (MTPPP) standard Power
Purchase Agreement (PPA) to be used as a basis for the REFIT standard
PPA.
- NERSA will facilitate the adoption of the PPA for REFIT purposes.
Additional information:
NERSA web site
News date:
31/03/2009
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