High Costs Stall South African Renewable Energy Projects
- Over 1,000 megawatts struggling to close, Globeleq CEO says
- Projects were announced as preferred bids in fifth round
Wind turbines in Hopefield, South Africa.
Photographer: Dwayne Senior/BloombergThis article is for subscribers only.
South African renewable energy projects selected over a year ago to add generation from private producers and help end electricity shortages are struggling to reach financial close due to an escalation in costs, according to one of the developers.
A dozen projects, with a combined capacity of more than 1,000 megawatts, remain hamstrung because of increases in financing and other charges, said Globeleq Inc. Chief Executive Officer Mike Scholey. The government announced the preferred bidders in October 2021 in the nation’s fifth bid round.