Infrastructure investments

The REIPPP

Equity Funding

(usually 20% to 30%)

Mezzanine Funding

(usually 0% to 10%)

Debt Funding

(usually 70% to 80%)

Renewable Energy Independent Power Producer (REIPP)

Implementation
Agreement
Generation
Licence
20-year
Power
Purchase
Agreement
Electricity

Single Buyer Office

Consumer

Payments
Electricity
* SA Department of Energy's Renewable Energy Independent Power Producer Programme.
  • Competitive bidding process
  • Socially responsible selection criteria:
    • 70% tariff plus 30% economic development
    • Development Levies typical 2.5% of topline revenue
    • B-BBEE mix of Codes plus own regulations
  • Risks addressed in bid submission:
  • Eskom off-take
  • Resource (wind/sunshine)
  • Construction
  • Technology
  • Operations
  • Funding structure
  • Explicit Government backing
  • Independent verification
  • EPC contract
  • Performance warranty
  • O&M contract
  • Fixed funding vs deflation