SA's energy one-stop shop projects for IPPs faces hurdles as US funding withdraws
The Energy One-Stop Shop was envisioned as a solution to help Independent Power Producers (IPPs) in South Africa to have their applications for new renewable energy projects approved in record time.
Image: Henk Kruger/Independent Newspapers
Banele Ginidza
The establishment of the Energy One Stop Shop (EOSS) project, an initiative aimed at revolutionising South Africa's renewable energy sector, is currently in limbo due to a significant funding shortfall.
Yunus Hoosen, head of Invest South Africa (InvestSA), disclosed to Parliament's Portfolio Committee on Trade and Industry on Wednesday that the project was seeking an additional R60 million to continue its rollout across all provinces.
The setback follows the withdrawal of funding from the United States under former President Donald Trump's Executive Orders.
"We have done the functional specs. We have been funded by donor agencies. We lost a little bit of funding from the US but we continue to talk to a number of other donors to see how we can get this programme going. Its is R60m and we intend to finalise and launch this in the fourth quarter of 2026," Hoosen said.
"What we plan to do is to have a one-stop shop in every province. We have them in three provinces and the one at the dtic [campus]. We are ready to roll out Eastern Cape and Limpopo. The Northern Cape is undergoing refurbishment, following that is Mpumalanga. We just need to do the work and sort out the one-stop shop in the Free State and the North West."
The EOSS was envisioned as a solution to the myriad challenges facing Independent Power Producers (IPPs) in the renewable energy landscape, working collaboratively with multiple government departments to simplify regulatory processes.
It's designed to provide guidance and support, enabling IPPs to navigate the complex authorisation landscape while effectively reporting progress and challenges to the Department of Trade, Industry and Competition (the dtic) and various National Energy Crisis Committee (NECOM) structures.
Collaboration plays a key role in the EOSS's success, and the programme works closely with private sector partners and industry associations, including Business Unity South Africa (Busa), the South African Wind Energy Association (SAWEA), and the South African Photovoltaic Industry Association (SAPVIA), among others.
However, the rollout has experienced delays, which Hoosen attributed to changes in executive leadership within coordinating entities, including CEOs and chief financial officers.
"We also face delays from provincial government frameworks. That has happened in the Free State. We could have rolled out a long time ago in the Free State," Hoosen said.
Despite these challenges, the EOSS has already unlocked various projects, such as a 9.8MW biogas facility supplying the BMW plant in Tshwane, and enabling the realisation of 70MW of biogas in the Free State.
Hoosen noted that as of December 2024, the overall achievements of the IPP programme included more than R239 billion in investments across 104 projects, facilitating the generation of just under 8 000MW of electricity.
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