South Africa Finally Opens Its Renewable Energy Market

South Africa Finally Opens Its Renewable Energy Market

A couple of days ago, there was a prominent advertisement in the Sunday Times ordered by the South African government. Through the advertisement, they explicitly invited all interested investors who wish to invest in renewable energy in South Africa to come to their country and submit their offers.

Although South Africa is a good place for renewable energy facilities, it wasn’t really attractive to investors because of certain government rules and laws. However, their government realized what needs to be changed in order to attract foreign investors and they did.

They announced that investors are welcome to invest in any kind of renewable energy (solar, wind, geothermal and so forth). The country’s geographical position is very suiting for renewable energy facilities. The South African government is looking to buy 1000 mW by 2013, and 4000 mW by 2016. It should also be noted that there is a rule that every interested party needs to pay $15,000 for every mW of installed capacity.

Another thing that their government is planning to do in order to increase investments in renewable energy is take more incentives from producers who produce electricity from sources that aren’t renewable. There will be a 3 cent incentive for them. CO2 emissions will be taxed.

All interested parties will be invited by the South African government who will hold a meeting for them all on September 14.

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