State regulator approves power licences

050910 Electricity pylons carry power from Cape Town's Koeberg nuclear power plant July 17, 2009. South Africa will need 20 gigawatts (GW) of new power generation capacity by 2020 and would require double that amount a decade later to meet rising demand, the country's power utility said September 7, 2009. Picture taken July 17, 2009. REUTERS/Mike Hutchings (SOUTH AFRICA ENERGY BUSINESS)

050910 Electricity pylons carry power from Cape Town's Koeberg nuclear power plant July 17, 2009. South Africa will need 20 gigawatts (GW) of new power generation capacity by 2020 and would require double that amount a decade later to meet rising demand, the country's power utility said September 7, 2009. Picture taken July 17, 2009. REUTERS/Mike Hutchings (SOUTH AFRICA ENERGY BUSINESS)

Published Jun 7, 2012

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Power licences have been approved for successful bidders of renewable energy, the National Energy Regulator of SA (Nersa), said on Thursday.

All 28 bidders were successful in the first phase of the Renewable Energy Independent Power Producer (IPP) Programme.

They will generate power from renewable resources such as solar or wind and sell it back to the state via Eskom.

“All 28 applications met the required criteria, which include technical, financial, economic, regulatory and legal requirements,” the regulator said in a statement.

The 28 IPPs would contribute 1416MW to the country’s total installed capacity.

A series of public hearings were held in March and the licensing process was completed in April.

The department of energy is targeting the provision of 3725MW from independent power producers.

According to government's Integrated Resource Plan 2010, 42 percent of all new electricity generation will come from renewable sources over the next 20 years. - Sapa

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