Funded by the Global Environment Fund (GEF), the feasibility study for the South African Wind Energy Programme was implemented in three phases, each one being contingent on the outcome of the previous one.
The project aimed to investigate the role for green funding to provide some of the incremental costs of supplying electricity supplied from renewable energy sources, such as wind, which is sold into voluntary – and later, mandatory markets – as Green Power or Green Electricity. The study complements a series of parallel studies and activities, including a Financial Engineering study, which will be synthesized and used to elaborate a project document for a SAWEP.
OneWorld’s work encompassed an analysis of the green energy market, with specific attention to understanding the financial issues and mechanisms of the industry within the South African context, particularly related to the legislative and institutional framework, and performing a gap analysis.
Furthermore, OneWorld undertook an economic analysis of current electricity prices in South Africa, including predictions for future price structures and their impact on the wind energy industry, which was used to then design a Tradable Renewable Energy Certificate System for South Africa including the supporting institutional framework. This component was prepared in conjunction with AGAMA Energy (Pty) Ltd.
The project was finalised through the facilitation (2004) of a SAWEP workshop for industry stakeholders.