Critical success factors for financing renewable IPPs in South Africa

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dc.contributor.advisorAlhassan, Abdul Latif
dc.contributor.authorHamilton-Tshangela, Someleze Noxolo
dc.date.accessioned2026-01-28T09:49:47Z
dc.date.available2026-01-28T09:49:47Z
dc.date.issued2025
dc.date.updated2026-01-28T09:43:41Z
dc.description.abstractThis dissertation investigates the critical success factors in financing Renewable Energy Independent Power Producers (REIPPs) in South Africa, focusing on both programme-level and project-level elements. By analysing financial, regulatory, and operational aspects, the research explores the key elements that impact on the bankability and sustainability of REIPP projects. This study adopted a qualitative research methodology, employing semi-structured interviews as the primary means of data collection. These interviews were conducted remotely via Microsoft Teams, recorded, and transcribed to ensure responses were captured accurately. The interview framework was developed based on extant literature, in particular Gratwick and Eberhard (2016) and Kruger (2021), to explore the programme-level and project-specific success factors influencing South Africa's Renewable Energy Independent Power Producer Procurement (REIPP) programme. A semi-structured approach was employed, incorporating both open- and close-ended questions to enable guided discussions and follow-up questions for deeper insights. This research is grounded in qualitative data collected from 10 interviews with key stakeholders involved in South Africa's REIPP programme. The sample includes two REIPP developers, two financial investors, and six advisors, providing a comprehensive perspective on the programme-level and project-level factors contributing to the programme's success. To assess the effectiveness of South Africa's REIPP programme, this study develops an analytical framework that examines both programme-level and project-level factors. At the programme level, the framework evaluates auction design and implementation, including procurement volume distribution, bidder selection criteria, and the efficiency of auctions in ensuring timely project execution (Kruger, 2021). At the project level, the framework considers determinants of project success, including financial feasibility, technical expertise, regulatory compliance, and stakeholder engagement as key determinants of project success. By integrating these factors, the framework offers a holistic perspective on how procurement mechanisms and project-level dynamics influence the overall effectiveness and sustainability of the REIPP programme thematic analysis of the interview data highlights the critical role of financial accessibility, the creditworthiness of off-takers like Eskom, the availability of skilled contractors, and the adequacy of grid infrastructure in achieving successful project execution. At the programme level, factors such as competitive bidding models, project scale, and regulatory efficiency are essential in ensuring the long-term sustainability of REIPPs. The Sensitivity: MTN Internal study emphasises the importance of well-structured tariff models, transparent bidding processes, and streamlined regulatory frameworks to address current challenges. Key strategic recommendations include enhancing financial mechanisms, increasing investment in grid infrastructure, and ensuring policy consistency to support South Africa's transition to renewable energy. These findings not only apply to South Africa but also offer valuable insights into other emerging economies seeking to develop their renewable energy sectors. Further research is recommended to explore innovative financing strategies, government policies, and long-term project performance to sustain progress in the renewable energy industry.
dc.identifier.apacitationHamilton-Tshangela, S. N. (2025). <i>Critical success factors for financing renewable IPPs in South Africa</i>. (). University of Cape Town ,Faculty of Commerce ,Graduate School of Business (GSB). Retrieved from http://hdl.handle.net/11427/42726en_ZA
dc.identifier.chicagocitationHamilton-Tshangela, Someleze Noxolo. <i>"Critical success factors for financing renewable IPPs in South Africa."</i> ., University of Cape Town ,Faculty of Commerce ,Graduate School of Business (GSB), 2025. http://hdl.handle.net/11427/42726en_ZA
dc.identifier.citationHamilton-Tshangela, S.N. 2025. Critical success factors for financing renewable IPPs in South Africa. . University of Cape Town ,Faculty of Commerce ,Graduate School of Business (GSB). http://hdl.handle.net/11427/42726en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Hamilton-Tshangela, Someleze Noxolo AB - This dissertation investigates the critical success factors in financing Renewable Energy Independent Power Producers (REIPPs) in South Africa, focusing on both programme-level and project-level elements. By analysing financial, regulatory, and operational aspects, the research explores the key elements that impact on the bankability and sustainability of REIPP projects. This study adopted a qualitative research methodology, employing semi-structured interviews as the primary means of data collection. These interviews were conducted remotely via Microsoft Teams, recorded, and transcribed to ensure responses were captured accurately. The interview framework was developed based on extant literature, in particular Gratwick and Eberhard (2016) and Kruger (2021), to explore the programme-level and project-specific success factors influencing South Africa's Renewable Energy Independent Power Producer Procurement (REIPP) programme. A semi-structured approach was employed, incorporating both open- and close-ended questions to enable guided discussions and follow-up questions for deeper insights. This research is grounded in qualitative data collected from 10 interviews with key stakeholders involved in South Africa's REIPP programme. The sample includes two REIPP developers, two financial investors, and six advisors, providing a comprehensive perspective on the programme-level and project-level factors contributing to the programme's success. To assess the effectiveness of South Africa's REIPP programme, this study develops an analytical framework that examines both programme-level and project-level factors. At the programme level, the framework evaluates auction design and implementation, including procurement volume distribution, bidder selection criteria, and the efficiency of auctions in ensuring timely project execution (Kruger, 2021). At the project level, the framework considers determinants of project success, including financial feasibility, technical expertise, regulatory compliance, and stakeholder engagement as key determinants of project success. By integrating these factors, the framework offers a holistic perspective on how procurement mechanisms and project-level dynamics influence the overall effectiveness and sustainability of the REIPP programme thematic analysis of the interview data highlights the critical role of financial accessibility, the creditworthiness of off-takers like Eskom, the availability of skilled contractors, and the adequacy of grid infrastructure in achieving successful project execution. At the programme level, factors such as competitive bidding models, project scale, and regulatory efficiency are essential in ensuring the long-term sustainability of REIPPs. The Sensitivity: MTN Internal study emphasises the importance of well-structured tariff models, transparent bidding processes, and streamlined regulatory frameworks to address current challenges. Key strategic recommendations include enhancing financial mechanisms, increasing investment in grid infrastructure, and ensuring policy consistency to support South Africa's transition to renewable energy. These findings not only apply to South Africa but also offer valuable insights into other emerging economies seeking to develop their renewable energy sectors. Further research is recommended to explore innovative financing strategies, government policies, and long-term project performance to sustain progress in the renewable energy industry. DA - 2025 DB - OpenUCT DP - University of Cape Town KW - critical success factors KW - financing Renewable Energy Independent Power Producers KW - REIPPs KW - South Africa LK - https://open.uct.ac.za PB - University of Cape Town PY - 2025 T1 - Critical success factors for financing renewable IPPs in South Africa TI - Critical success factors for financing renewable IPPs in South Africa UR - http://hdl.handle.net/11427/42726 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/42726
dc.identifier.vancouvercitationHamilton-Tshangela SN. Critical success factors for financing renewable IPPs in South Africa. []. University of Cape Town ,Faculty of Commerce ,Graduate School of Business (GSB), 2025 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/42726en_ZA
dc.language.isoen
dc.language.rfc3066eng
dc.publisher.departmentGraduate School of Business (GSB)
dc.publisher.facultyFaculty of Commerce
dc.publisher.institutionUniversity of Cape Town
dc.subjectcritical success factors
dc.subjectfinancing Renewable Energy Independent Power Producers
dc.subjectREIPPs
dc.subjectSouth Africa
dc.titleCritical success factors for financing renewable IPPs in South Africa
dc.typeThesis / Dissertation
dc.type.qualificationlevelMasters
dc.type.qualificationlevelMCom
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