Investigating the financial close of projects within the South African renewable energy independent power producer procurement programme
Date
2014-11
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Southern African Institute for Industrial Engineering
Abstract
South Africa may have a generation capacity shortage in the near future. The Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) is playing an important role in creating generation capacity to fulfil future demand requirements. This investigation focused primarily on identifying the problems that have been experienced with projects in the programme (e.g., to reach financial close). The research showed that there is good alignment between the requirements in the request for proposals and those from financiers. Several issues caused delays in projects reaching financial close. However, respondents to this study indicated that the REIPPPP is well thought out and that several problems are being addressed successfully.
Suid-Afrika kan in die nabye toekoms ’n tekort aan elektrisiteit opwekkingsvermoë ervaar. Die regering se onafhanklike kragopwekkers groenkrag-aankoopprogram – of te wel die REIPPPP – speel ’n belangrike rol in die skep van opwekkingsvermoë om aan toekomstige aanvraag vereistes te voldoen. Hierdie navorsing het primêr gefokus op die identifisering van die probleme wat ondervind is deur projekte in die program – spesifiek met finansiële sluiting. Dié navorsing toon dat daar ’n goeie korrelasie tussen die vereistes van die regering – in die navrae na voorstelle – en dié van finansierders is. Verskeie probleme het vertragings in finansiële sluiting van projekte veroorsaak. Tog dui respondente van hierdie studie aan dat die program goed deurdag is en dat verskeie probleme suksesvol aangespreek word.
Suid-Afrika kan in die nabye toekoms ’n tekort aan elektrisiteit opwekkingsvermoë ervaar. Die regering se onafhanklike kragopwekkers groenkrag-aankoopprogram – of te wel die REIPPPP – speel ’n belangrike rol in die skep van opwekkingsvermoë om aan toekomstige aanvraag vereistes te voldoen. Hierdie navorsing het primêr gefokus op die identifisering van die probleme wat ondervind is deur projekte in die program – spesifiek met finansiële sluiting. Dié navorsing toon dat daar ’n goeie korrelasie tussen die vereistes van die regering – in die navrae na voorstelle – en dié van finansierders is. Verskeie probleme het vertragings in finansiële sluiting van projekte veroorsaak. Tog dui respondente van hierdie studie aan dat die program goed deurdag is en dat verskeie probleme suksesvol aangespreek word.
Description
CITATION: Pieters, I., Lotz, M. & Brent, A. C. 2014. Investigating the financial close of projects within the South African renewable energy independent power producer procurement programme. South African Journal of Industrial Engineering, 25(3):pp 57-68, doi:10.7166/25-3-912.
The original publication is available at http://sajie.journals.ac.za
The original publication is available at http://sajie.journals.ac.za
Keywords
Renewable energy sources -- South Africa, Electric power production, Project management -- Evaluation
Citation
Pieters, I., Lotz, M. & Brent, A. C. 2014. Investigating the financial close of projects within the South African renewable energy independent power producer procurement programme. South African Journal of Industrial Engineering, 25(3):pp 57-68, doi:10.7166/25-3-912.