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Renewable Energy Feed-In Tariffs (REFIT) South Africa announced

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:
  1. 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

  1. The term of the REFIT Power Purchase Agreement be twenty (20) years.
  2. 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.
  3. A Reduction Rate to be excluded from REFIT.
  4. Carbon revenue from the Clean Development Mechanism (CDM) be excluded from the REFIT.
  5. Other REFIT qualifying technologies to be considered for inclusion in six (6) months time.
  6. The Renewable Energy (RE) Power Purchase Agency (REPA) to be housed in Eskom’s SingleBuyer Office.
  7. Monitoring and Verification to be the responsibility of the Single Buyer Office.
  8. The Medium Term Power Purchase Program (MTPPP) standard Power Purchase Agreement (PPA) to be used as a basis for the REFIT standard PPA.
  9. 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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