50% of South African renewable projects not producing electricity 

Only 50% of the renewable energy projects procured during Bid Window 5 in South Africa have come online, while the rest have failed to reach financial close. Issues like rising borrowing costs, unsustainable tariff pricing, and aggressive bidding to win contracts have contributed to the inability of several projects to proceed.  

Economic shifts after the Covid-19 pandemic and the Russian invasion of Ukraine have also increased the costs of renewable projects, making many unviable at proposed tariffs. This situation has led to concerns about grid capacity, as some unviable projects are occupying vital grid space.  

The government’s focus should be on ensuring sufficient grid capacity for viable projects to come online, as grid access is a significant bottleneck for new generation capacity. 

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