Utility-scale renewable energy sector – 2016 Market Intelligence Report

The report examines the South African utility-scale renewable energy market, primarily driven by the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). It details the growth of wind and solar PV, the impact of local content requirements, and the role of the Western Cape as a greentech hub. It also identifies expansion opportunities within the SADC region and other African nations, while noting infrastructure constraints at Eskom.

• The Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has procured over 6,300 MW across five bidding rounds, with 92 projects in various development stages. As of June 2015, 37 projects had reached commercial operation, contributing approximately 1,900 MW to South Africa's generation mix.
• Utility-scale wind and solar PV tariffs have seen significant reductions since the first bidding round, decreasing by over 45% and 73% respectively, making them the cheapest new-build generation sources in South Africa.
• Local content requirements in the REIPPPP create an investment opportunity of R65 billion for rounds 1–4 preferred bids, aiming to capture approximately 45% of spend on project construction and operation nationally. By 2015, R21.7 billion had been spent on local content for mostly round 1–3 projects.
• The South African government has committed to further expanding the REIPPPP through a Ministerial determination to procure an additional 6,300 MWp. Additionally, 1,500 MWp of solar power capacity is designated for the Northern Cape Province as a national legacy for SAIREC 2015.
• Eskom's ability to support the RE programme was challenged in late 2015 when the utility halted the issuance of budget quote letters, citing a lack of allocated funds for infrastructure needed to connect projects beyond the third bidding window.
• The Western Cape is positioned as a greentech hub, specifically through the Atlantis Greentech SEZ, which offers incentives such as a reduced corporate tax rate of 15% (down from 28%), employment tax incentives, and building allowances.
• South African RE investors have opportunities to expand into the SADC region and other African markets. Specific opportunities include solar resources in Botswana, a renewable energy Feed-In-Tariff in Namibia, and geothermal capacity estimated at 17 GW in Kenya.

APA

GreenCape (2016). Utility-scale renewable energy sector – 2016 Market Intelligence Report. https://greencape.co.za/wp-content/uploads/2022/10/GreenCape-Renewable-Energy-MIR-2016-3.pdf

Chicago

GreenCape. Utility-scale renewable energy sector – 2016 Market Intelligence Report. 2016. https://greencape.co.za/wp-content/uploads/2022/10/GreenCape-Renewable-Energy-MIR-2016-3.pdf.

Wikipedia

{{cite report |author=GreenCape |title=Utility-scale renewable energy sector – 2016 Market Intelligence Report |date=2016 |url=https://greencape.co.za/wp-content/uploads/2022/10/GreenCape-Renewable-Energy-MIR-2016-3.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greencape2016utilityscale, author = {{GreenCape}}, title = {{Utility-scale renewable energy sector – 2016 Market Intelligence Report}}, institution = {GreenCape}, year = {2016}, url = {https://greencape.co.za/wp-content/uploads/2022/10/GreenCape-Renewable-Energy-MIR-2016-3.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }