Nersa delays green tariffs
Johannesburg - The National Energy Regulator of SA (Nersa)
said on Tuesday that it had delayed the approval of the renewable energy
feed-in tariff (Refit) until mid-June.
Nersa said it was still analysing and consolidating all
information received from stakeholders after public hearings earlier in May.
A total of 200 written comments were received and more than
40 presentations made during the public hearings, it said.
The delay in the approval is likely to anger independent
renewable energy producers, who have been waiting for certainty before
embarking on projects.
A mechanism to support the deployment of renewable energy
technology, the tariffs are usually guaranteed over a fixed period and will be
used by a still-to-be set up entity that will buy renewable energy.
Two years ago, Nersa set the tariffs, which ranged from
R0.90/kWh to R3.94/kWh, seen as generous enough to stimulate the
necessary investment. But the review of the tariffs might change the
profitability of new renewable energy ventures.
Business Day reported last week that what appears to have
upset the industry is the magnitude of the tariff drops and the
fact that the review has happened even before any renewable power has been
Nersa has proposed big reductions to the initial tariffs.
For example, the regulator wants the feed-in tariff for photovoltaics to fall
by as much as 41.3%.