South Africa revamps biofuels policy in wake of low oil prices

August 13, 2015 |

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.

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Category: Policy

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