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IPP sector hopes for positive announcement in SA

During the course of this week, an announcement regarding IPP sector projects for renewable energy resources is expected, this according to South Africa’s energy minister, David Mahlobo.

The year has not been a positive one for independent power producers (IPPs) as a number of delays in signing IPP sector deals put a strain on the sector’s sustainability. Read more…

Renewable IPPs have been sidelined by the Department of Energy and Eskom’s failure to provide clarity on the way forward to sign Power Purchase Agreements with IPP projects. Whilst in June, an inter-governmental task team proposed delays that could extend to February 2018. Read more…

Mahlobo eludes to advancements

Speaking to a group of private sector energy developers on Friday 1 December, Mahlobo reiterated the importance of the right mix of energy sources and that South Africa’s implementation model needs to take into account pace, scale and affordability.

“We must stimulate growth to take the IPP programme forward,” he said.

Mahlobo added: “We have looked at issues like greater participation by South Africans, women and youth and we need to see bigger socio-economic impacts for the communities around renewable energy plants. While drawing on international experience is important, technology localisation is key.”

Open dialogue needed for IPP sector

The event’s JSE-listed sponsor Hulisani’s CEO, Marubini Raphulu, said that the level and openness of engagement with industry was encouraging.

“IPP projects are important to unlock greater inclusion, as well as opportunities for black industrialists, women and youth.  Energy is not only central to any functioning economy, it is also a catalyst for development and progress,” he said.

Mahlobo reiterated the importance of South Africa’s energy mix. “The fundamentals of the draft IRP 2016 to 2030 are not changing, we review them every so often to keep up with the latest energy developments.

“As a country, we need to balance the importance of foreign direct investment while creating enabling conditions. But we can’t shy away from our national interest. There is often a premium for transformation, but it needs to happen.”


Featured image: Stock