Green firms see red over tariffs

Cape Town - Environmental groups and potential developers of renewable energy are on the warpath over what they regard as unduly restrictive measures proposed by the National Energy Regulator of South Africa (Nersa) to qualificy for green power incentive tariffs.

Selection criteria for green power projects which will qualify for Nersa's incentive tariffs were recently published for public comment.

The deadline for comments is Wednesday March 17.

According to environmental group WWF-SA, the proposed rules do not provide for any new electricity generation from renewable sources in 2013, compared with only 200MW in 2012 and 675MW from this year to 2011. These figures, moreover, include Eskom's own 100MW wind farm.

Richard Worthington, climate change manager at WWF-SA, says if rules remain as they are they will fail to attract the investment necessary to establish a local renewable energy industry in South Africa.

He warned that regulatory restrictions on short-term renewable energy developments could force government to choose between nuclear and coal-fired power, while a maximum of renewable energy should be planned for to encourage local manufacture and attract private and international funders - who have no appetite for investment in coal-fired power stations such as Kusile.

While Nersa provides for only 875MW of renewable energy up to and including 2013, Eskom has received applications for more than 10 000MW in wind farm link-ups.

Most of the independent power producers who have been hoping to gain a foothold in the South Africa's green power market face disappointment.

- Sake24.com

For business news in Afrikaans, go to Sake24.com.