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South Africa’s plans to buy emergency power from solar IPPs have been marred in controversy.
- The government has waived a local content requirement after the award of the tenders.
- The government says that the waiver will only apply to the emergency bid round.
South Africa’s recent tender for emergency power has been marred in controversy and accusations of unfairness after a local-content requirement for solar panel frames was scrapped after the tenders were awarded. The Department of Trade, Industry and Competition had earlier this month waived the 65% local-content requirement on aluminium frames for photovoltaic panels after ARTsolar and China’s Seraphim Solar applied for an exemption.
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In response, the South African Photovoltaic Industry Association (SAPVIA), which represents both manufacturers and importers of solar panels, stated that the exemption comes at a disadvantage to its members who did not know that government would change the bidding requirements retrospectively. The association’s chairman added that local solar panel factories have had to stop production due to the inconsistency of demand from the government.
Officials from the trade department noted that they were unaware that the frames could not be produced locally stating that the local-content waiver would only apply to the emergency power bid round.
ARTsolar and Seraphim Solar can sell panels to some of the tender winners following the waiver, as they plan to triole their production capacity. The preferred bidders selected in March must conclude funding arrangements and regulatory requirements by the end of July to activate their contracts.