HomeIndustry SectorsFinance and PolicyKubayi to announce progress in signing of IPPs

Kubayi to announce progress in signing of IPPs

South African renewable stakeholders are waiting in anticipation for the Minister of Energy, to reveal progress made with the signing of the Independent Power Producers (IPP’s) and Power Purchase Agreement (PPA’s).

Mmamoloko Kubayi will be announcing the developments at noon today where members of the media have been invited to report.

Kubayi to address media

The purpose of the briefing is for Kubayi to give details on the outcome of the consultation of stakeholders in the pending IPP PPA signing ceremony, the Department of Energy (DoE) said in a statement. Read more…

In addition to, the briefing will also address “key issues of energy security, accessibility and affordability in the context of economic recovery of the country,” the DoE said in a statement.

The DoE added that it “will also reflect on the role of renewables in the broader growth of the energy sector as well as context of energy mix policy.”

The delays in new IPP projects under the REIPPP programme have caused emerging markets to endure much of the impact. In a June statement, the South African Renewable Energy Council (SAREC) said that nearly R58 billion ($4.4 billion) of investment has been stalled – an estimated 13,000 construction jobs have been lost and billions of Rands of local economic development spend foregone. Read more…

SAREC chair Brenda Martin explained in the statement: “The industry had already attracted a substantial eco-system of service industries and was beginning to leverage investment in heavy up-stream fabrication industries.”

Eskom’s apparent objections to signing agreements with preferred renewable bidders ignore these broad benefits and instead focus the utility’s selfish interests, SAREC noted.

Before the renewable energy programme halted in 2015, it was trumpeted as a resounding success by both government and Eskom. Read more…

SAREC noted that bid tariffs had tumbled to the point where renewable energy has become the cheapest option for new generation capacity available to the country.


Featured image: Stock

Ashley Theron
Ashley Theron-Ord is based in Cape Town, South Africa at Clarion Events-Africa. She is the Senior Content Producer across media brands including ESI Africa, Smart Energy International, Power Engineering International and Mining Review Africa.