Promoting innovation in the procurement of renewable energies and preparing regional electricity transmission projects

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South Africa's state tender program for renewable energies (Renewable Energy Independent Power Producers Procurement Program, REI4P) is considered successful and largely responsible for South Africa being one of the leading investment locations for renewable energies (RE) among emerging countries. The planned FC project provides for measures to further develop the REI4P and to expand the program's regional RE activities. During the government negotiations between South Africa and Germany in November 2016, the Department of Energy (DoE) asked for FC support in the areas of further developing South Africa's RE promotion and expanding regional power transmission to tap into RE potential in the region. As part of the negotiations, it was decided to use an FC grant of EUR 4 million promised in 2014 for this purpose. The FC project will contribute to further improving the investment conditions for renewable energies in South Africa and the region (module objective). The project contributes to achieving the development cooperation programme objective and to further increasing Germany's visibility in the global spread of renewable energies. The direct target group of the FC measures is the IPP Office belonging to the Ministry of Energy, which is responsible for the implementation of the REI4P, and the private energy producers (IPPs). Indirectly, all consumers in South Africa (and the region) benefit from a secure and climate- and environmentally-friendly electricity supply. The implementation of the FC project is the responsibility of the DoE IPP Office. The formal recipient and project sponsor is the Development Bank of Southern Africa (DBSA). The cooperation between the organizations is basically regulated in a memorandum of agreement and the division of labor for the implementation of the FC project will be the subject of the project appraisal.