South Africa moved away from the REFiT framework to a
criteria-based bidding approach for proposals to finance, construct,
operate, and maintain renewable energy generation
facilities. Under this system, submitted proposal are evaluated
and contracts assigned based on various criteria, including the
potential for the creation of a local industry, job creation, black
economic empowerment, and technology transfer. Three of the
five proposed biding rounds have already occurred with the aim
of procuring 6,724 MW of renewable capacity from independent
power producers by 2016. By August 2014, 64 projects totalling
3,916 MW are at various stages of development—financial
close, construction, and initial operation—making South Africa
the fastest growing renewable energy market on the continent
in 2014. Competitive bidding was the chosen policy tool to help
transition the South African economy from its current coalbased
energy system to one that is composed of 17,800 MW of
renewables by 2030. While the overall contribution of renewable
energy has increased, there is still relatively modest progress in
the area of decentralised renewable energy technologies such as
small-scale, roof-top PV, and off-grid systems.