Refit project criteria likely to be tough


The upcoming request for proposals (RFP) for the first round of renewable- energy feed-in tariffs(Refit) will include exacting selection criteria as government seeks to separate the “wheat from the chaff”, in a context where far more interest has been shown by potential developers than the 1 025 MW on offer, a feed-in-tariff specialist argues.
But Camco MD Jonathan Curren adds that the winning bidders will be well positioned to earn above-average returns, owing to the fact that technology costs, as well as South Africa’s currency, have moved in favour of developers since the tariffs were officially approved in 2009. However, they will still receive 20-year procurement contracts under the terms approved by the regulator.