AN ASSESSMENT OF EMERGING HYBRID PUBLIC-PRIVATE PARTNERSHIPS IN THE ENERGY SECTOR IN SOUTH AFRICA

Abstract

The power sector is one of the greatest beneficiaries of private investment through public-private partnerships (PPPs) and project financing structures globally. South Africa has adopted a unique approach to renewable energy (RE) project finance and partnership development. This unique approach is referred to as the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The programme is implemented through Independent Power Producer (IPP) projects. The aim of this article is to assess IPPs as a variant model of PPPs. To this end, the first objective is to determine what type of partnership IPPs constitute. The second objective is to gain an understanding of how a variant PPP model can be structured. This research is based on a qualitative research design. Data from past research studies, comprising 66 interviews and 168 interviews respectively, were triangulated with current research, including 13 interviews and a conceptual and documentary analysis. The findings of the research suggest that IPPs contribute to diversifying the country’s energy mix; developing RE technology; infrastructure, local economic, and green skills development; and stimulating socio-economic development. This research is unique as the concept of hybridity or hybrid PPPs is an unexplored area in public sector management. Hybrid PPPs represent a unique approach to public-private procurement for energy partnerships. The hybrid PPP model serves public interest and is crucial to the country’s energy transition.

Keywords

• Hybridity, Independent Power Producer, Public-Private Partnerships, Renewable Energy Procurement