In the Budget Speech on 24 February 2016, the Honourable Mr Pravin Gordhan, Finance Minister of South Africa, announced that the Department of Energy’s (DoE) Independent Power Producers Procurement (IPPP) Programme will be extended to include coal and gas power projects. According to Paschal Phelan, Chairman of Solar Capital, the IPPP Programme will be rolled out in order to replicate the successes achieved in the South African renewable energy sector. “Although the replication in other sectors will allow for further energy to be produced, a focus on solar power would allow for the supply of energy at a massively reduced rate.” He explains that not only is solar energy readily and freely available, but the cost of solar technology (internationally and locally) has come down substantially in the last few years. “Internationally, the price has reduced as a result of technological innovation, the manufacturing learning rate, economies of scale and further competition.” Phelan points out...