Renewable Energy Feed-in Tariff (REFIT)

In March 2009, South Africas National Energy Regulator (NERSA) approved the country's first renewable energy feed-in tariff (REFIT) scheme. 
The REFIT places an obligation on Eskom (South Africas public utility) to purchase the output from qualifying renewable energy generators at pre-determined prices based on the levelised cost of electricity. 

REFITs Phase I which covered the following four technologies: Wind; Small hydro; Landfill Gas Methane and Concentrated Solar (CSP), Plant Parabolic trough with storage (6 hrs per day).

REFITS Phase II tariffs were approved for six new technologies: Concentrated Solar Power (CSP) trough without storage (ZAR 3.14/kWh); CSP Tower with storage of 6 hrs per day (ZAR 2.31/kWh); Large-scale (1MW or more) grid connected PV systems (ZAR 3.94/kWh); solid biomass (ZAR 1.18/kWh); and biogas (ZAR 0.96/kWh).

 
The REFIT power purchase agreement last for 20 years, and the tariff can be adjusted yearly for inflation.

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