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Energy & Mining Trends 2018

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Long-awaited renewable PPAs back on track

After a delay of two years, Minister of Public Enterprises, Lynne Brown, has finally given Eskom the green light to sign the outstanding power purchase agreements (PPAs) with renewable power producers.
Brenda Martin, CEO: South African Wind Energy Association
So, 27 renewable energy projects, which include wind, solar PV and CSP should soon be able to proceed toward construction, reigniting South Africa’s renewable energy independent power procurement programme (REI4P), said Brenda Martin, CEO of South African Wind Energy Association (Sawea).

The renewable energy industry has operated with extensive uncertainty. With this final step now achieved, we hope that the country’s renewable procurement programme will soon be back on track so that the many benefits to rural communities can be realised, much-needed jobs can be created, and so that investor confidence can be regained, a statement from the organisation said.

The minister's approval is the last step in the process and all that is now required is for all affected parties to set a mutually suitable date for signing the 27 power purchase agreements.

Explaining the process, Martin said, “Over the next few weeks, each party will need to ensure that their documentation is current. Once PPAs are signed, IPPs will move ahead according to their implementation agreements’ timelines.”

The last set of winning bids were announced in 2015. The task of getting the SA renewables programme back on track will be a challenge for all involved. Sawea looks forward to working with government, civil society and labour to ensure that the programme makes an optimal contribution to South Africa’s economic, social and environmental security as the country prepares for the necessary energy transition.
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