In order to ensure that the construction and operation of renewable energy projects in South Africa is not hampered by unsatisfied local communities it is important that borrowers’ and sponsors’ alike invest in educating local communities on how they derive benefit from the projects.

Since our article of September 2014 (Renewable energy projects: community

The Ancillary Services Agreement (ASA) was introduced in briefing note 4 of the Coal Baseload IPP Procurement Programme (the Baseload RFP).  The ASA will be entered into by Eskom with each seller of power generated from coal IPP power stations being developed under the Baseload RFP, in parallel with a power purchase agreement with Eskom.