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South Africa signs off 633MW of wind projects

SOUTH AFRICA: The South African government has signed off power purchase agreements with developers for eight wind projects comprising 633MW.

Late last year, South Africa announced 28 preferred bidders following the first round of its call for tenders under the renewable-energy independent power producer (IPP) programme.

The eight wind projects will earn ZAR 1.14/kWh ($0.131/kWh), as against Eskom's current wholesale tariff of ZAR 0.66/kWh. But the wholesale rate could rise to ZAR 1.28/kWh if Eskom is allowed to increase its tariffs as requested, which is five increases of 16% a year between 2013 and 2018.

Successful developers include Sumitomo, which is building the 100MW Dorper wind farm on the Eastern Cape. The project will use Nordex turbines, with installation set to begin imminently.

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