A government study is currently under way to explore alternative support for the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), the National Treasure states in its 2022 Budget Review.
“This is expected to result in a reduction or elimination of guarantee requirements for the programme, reducing the stock of contingent liabilities,” the documents adds, while stressing that contingent liability risks for independent power producers (IPPs) represent a low risk to the fiscus.
The Budget Review states that a further 6 783 MW, with an associated investment of at least R128-billion, is expected to be procured under the REIPPPP over the three-year expenditure period.
“The value of signed projects, which represents government’s exposure, is expected to amount to R177-billion by 31 March 2022.
“Exposure is expected to decrease to R156.6-billion in 2022/23, R137.8-billion in 2023/24 and R120.8-billion in 2024/25,” the National Treasury states.
It adds that a government study is exploring alternative support for the REIPPPP, but does not provide details of the possible alternatives.