South Africa revamps biofuels policy in wake of low oil prices

In South Africa, the government has had to adjust its biofuel subsidy plans in light of lower oil prices. The new subsidy plan will now be on a competitive bidding basis, not far from the mechanism for contracting solar power, a move that local project developers are concerned may not work. The idea of a one-size-fits-all subsidy scheme for renewables but for very different sectors like solar and biofuels could introduce further investment risk. The previous subsidy plan was based on a first come, first served basis.