For South Africa’s independent power producers (IPPs), moving from project concept to financial close can be a long and uncertain journey. The biggest challenge isn’t always funding or technology – it’s navigating the maze of up to twenty-four permits and almost as many assessments for regulatory approvals needed before a single solar panel or turbine can be installed. A single missing permit is enough to prevent financial close and sink a multi-billion Rand project.
Mzansi Energy Consortium (MEC) has learned first-hand how complex this process can be – and how to get it right. Nearing the end of guiding its own flagship renewable project through the permitting cycle, MEC now brings that hard-won experience to help other developers overcome the same hurdles and accelerate progress towards bankability.
“Reaching financial close is about making lenders comfortable to invest,” says Reino van Aswegen, MEC’s Finance & Commercial Manager. “Behind that bankability lies a complex web of interdependent permits and technical assessments. Miss just one – or get the sequence wrong – and the entire project can grind to a halt. There’s no capital, no construction, no clean power.”
The Hidden Web Behind Every Renewable Project
In theory, the permitting process should be straightforward: follow the checklist. In practice, it rarely is. Approvals are often linked by hidden dependencies and contradictory requirements. For example, a Water Use Licence Application (WULA) may depend on engineering data that can only be generated once the total water requirements and the intended water source have been determined – a step which can only happen by means of a Water Use License Application. This necessitates assessing the water demand not only for the construction phase but also for the entire operational lifecycle of the generation facility. Add to this a network of subcontractors and specialist consultants – from aviation and hydrology experts to geotechnical assessors – and the timelines quickly overlap, each dependent on another.
Van Aswegen describes MEC’s first large-scale renewable project as a steep learning curve. Despite early engagement with environmental impact assessments (EIAs) and rezoning studies, new layers of bureaucracy and technical conditions continually emerged. “At one point, it felt like every week brought a new permit type,” he recalls. “Some required others to be completed first; some could only start after specific designs were finalised. And every permit involved either consultants and/or government bodies with their own backlogs.”
When One Approval Can Stop Everything
MEC’s experience revealed a stark truth: in South Africa’s renewable energy sector, a single delayed permit can halt an entire project. “For example, you can have your EIA, your consultants, your lenders ready,” says Van Aswegen. “But if your Civil Aviation Authority approval doesn’t come through, you simply don’t have a project.”
The aviation approval process required MEC to commission a specialist ATNS Glint and Glare Assessment from one of only a few accredited subcontractors before submitting to the Civil Aviation Authority (CAA). Only once that step was complete – and validated through approved intermediaries – could the project move forward.
“It’s a small example,” Van Aswegen notes, “but multiply that by twenty-four, and you start to understand how intricate the permitting journey really is.”
Turning Experience into an Advantage
What began as a challenge has now become MEC’s competitive edge. The consortium has built an extensive internal knowledge base that maps every permit, every sequence and every specialist discipline involved in achieving financial close. This insight now shapes MEC’s partnerships with other developers, offering a practical roadmap through the regulatory maze.
“Other IPPs can benefit directly from what we’ve learned,” Van Aswegen explains. “We’ve identified the dependencies, we know where the pitfalls lie and we have established relationships with consultants and advisers who can move things forward efficiently. In short, we’ve done the hard work – so they don’t have to.”
Accelerating Bankability Across the Renewable Ecosystem
MEC can act as both developer and as a trusted partner for other IPPs seeking to reduce permitting risk, strengthen bankability and bring clean-energy projects online faster.
“There’s no shortcut through South Africa’s regulatory framework,” says Van Aswegen. “These permits exist for good reasons – environmental protection, safety, community impact. But there is a way through it. Understanding that path, and the interdependencies along the way, can mean the difference between a project that reaches financial close and one that never leaves the drawing board.”
About Mzansi Energy Consortium
Mzansi Energy Consortium is a leading renewable energy developer in South Africa, formed through a partnership between Journey2Green and Summit Partners Energy Consortium. The consortium delivers bankable, technically advanced clean energy projects with a strong emphasis on socio-economic upliftment.
Media Contact: Tumi Mogoera, Chief Marketing and Sustainability Officer Mzansi Energy Consortium
Email:tumi@mzansi.energy
Issued by: Michelle Oelschig, Scarlet Letter
Contact details: 083-636-1766, michelle@scarletletter.co.za