Fin24

Industry opposes green tariff changes

2011-04-11 16:35

Johannesburg - The proposed review of feed-in tariffs is being opposed by three major associations in the renewable energy industry.

This was in response to the National Energy Regulator of SA's (Nersa's) proposal in March to review the renewable energy feed-in tariffs (REFIT) announced in 2009.

Nersa proposed cutting the REFIT rates compared to those announced in 2009.

A joint statement on Monday by SA Wind Energy Association (SAWEA), SA Solar Thermal and Electricity Association (SASTELA) and SA Photovoltaic Industry Association (SAPVIA) proposed a fixed feed-in tariff scheme.

This was because of their proven record and industrial development benefits, including job creation.

The three associations had consulted with government stakeholders about the government's commitment to continuing with the REFIT process.

"Although there has been no definitive statement made, it appears that post these engagements the majority of government stakeholders see no sense in deviating from the proposed REFIT processes," said SAWEA chairperson Mark Tanton.

He said a tariff review by Nersa would not derail the REFIT process, but could delay the procurement process.

A significant tariff review could cause a "severe blow" to market confidence and could compromise secure electricity supply, the organisations said.