PV in South Africa - the REIPPP program as enabler for the local PV industry

Abstract

The South African REIPPP program is a success. To continue this success a continuous attention for the details is necessary. Focussing on the PV programs and more on the PV modules, this detail is the formulation of the local content. With the current formulation of the local content and its increasing value in subsequent rounds, the local manufacturers will face an abrupt demand change that is extremely challenging to manage. A suggestion is given to add to the local content formula a sentence describing that a fraction (proposed is 40%) of the PV modules installed in South Africa have to be laminated in South Africa. This formulation will result in a gradually increased production capacity and a healthy and sustainable local PV module industry including the vast majority of the raw materials. A local manufacturing of the PV modules in South Africa will be guaranteed, which eliminates the intrinsically cost increasing assembly of PV modules. No increase of the electricity price (R/kWh) will be obtained and most exciting, the development of the local private South African PV market will be significantly accelerated. In this way the REIPPP program fulfils its aim as the enabler for the local South African PV industry.