South Africa’s energy minister, David Mahlobo, has confirmed that Cabinet has approved an updated Integrated Resource Plan (IRP) for electricity.
Speaking at a media briefing on Thursday, Mahlobo noted that the revised plan, which concluded after a 12-hour meeting on Wednesday, would be published without any further public consultation, Engineering News reported.
Citing the Minister, Engineering News reported that “the updated plan had retained the relative contributions of each of the generation technologies included in the IRP 2010. However, the mix had been adjusted for a lower demand forecast.”
Revised Integrated Resource Plan
The new plan has reduced capacity allocated to coal, solar, wind, hydro and nuclear.
Mahlobo explained that “the percentages have not changed . . . the only thing we are changing is the volume.
“We will no longer have 9.6 GW of new nuclear, it has come down.”
The Minister said that the revised plan would assist investment decisions but was not government policy and did not stipulate the financial model.
Citing the Minister, media reported that government policy was for an energy mix, while the financial model would be determined through competitive bidding. Read more…
The Minister said he had signed off on the procurement of 27 outstanding renewable energy projects, and the power purchase agreements should be signed during the course of next week.
“The projects, which have been stalled since 2015, would facilitate R55-billion-worth of direct investment. It also appears that the price cap of 77c/KWh outlined by Mahlobo’s predecessor, Mmamoloko Kubayi in September, had not been enforced,” Engineering News reported.
“I will not get into the contract matter, the rands and cents, but I can tell you that they have managed to find each other,” Mahlobo said.
Featured image: BizNis Africa