26 November 2012 – Eskom says it remains committed to facilitating the entry of independent power producers (IPPs) and welcomes their entry into the South African electricity market. Eskom is supporting the government’s renewable energy independent power producer programme, which aims to bring 3,725 MW of renewable IPPs onto the national grid.

On 5 November 2012, Eskom signed 28 power purchase agreements for the first round totalling 1,441.7 MW of renewable energy capacity with an average price between ZA114 c/MWh and 275 c/MWh (dependent on technology). The 20 year agreements will introduce renewable energy on to the national grid on a significant scale, and are the first long-term power purchase agreements to be signed with IPPs since the mid-1970s.

Eskom also signed a short-term power purchase agreement for two years with Agrekko in Mozambique for 93 MW from July 2012. As at 30 September 2012, Eskom had a total capacity of 1,082.6 MW contracted from IPPs (September 2011: 888 MW) on short and medium term programmes, at an average price of ZA80 c/kWh. The amount paid in relation to IPPs in the period to 30 September 2012 totalled R1.3 billion.