The Refinancing Initiative, initiated by the Department of Mineral Resources and Energy (DMRE) in October 2019, aimed to cut Bid Window 1 – 3.5 rates and help consumers pay cheaper national electricity costs. To ensure that the procedure followed when executing a refinancing is transparent, effective, and consistent, the Department released the Refinancing Protocol in July 2020, supplemented by Guidance Notes 1 through 5.
Since the Initiative’s inception, the Department has granted approval to fifteen (15) proposals for refinancing, which has resulted in nominal savings of around R4 billion over the duration of the relevant Power Purchase Agreements.
The Department has determined that the current Refinancing Protocol needs to be updated in order to, among other things, a) accommodate all Funders by changing language that might have been interpreted as restricting the type of funding targeted for Refinancing, and b) offer guidance for projects intending to refinance by accessing Capital Market Instruments.
The amended Protocol shall take the place of the current Protocol and any issued Guidance Notes. Therefore, starting from the earlier of the publication date or the 31 March 2023, it will serve as the guideline used by Sellers and projects when preparing their refinancing applications.
To maximise the advantages to the consumer from tariff reductions, all IPPs from the REIPPPP Bid Windows 1 to 4 are invited to continue taking part in this project.