Key judgement secures renewable IPP contracts with Eskom

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In the recent case, the CTF's agenda was clear: to try to put a stop to the IPP programme. The IPPs were supported in their opposition by Eskom, the National Energy Regulator of South Africa (Nersa) and the minister of energy.

CTF sought to argue that the Nersa was required to take a number of decisions prior to the conclusion of the PPAs and had failed to do so. Consequently CTF argued that the PPAs that had been concluded should be declared null and void and that Eskom should be interdicted from concluding the three outstanding PPAs until Nersa had taken the requisite decisions. On the day of the hearing CTF conceded that Nersa had in fact taken many of the decisions that the CTF had persisted, for almost two years, had not been taken, but continued to argue that certain material decisions had not been taken by Nersa.

The High Court ruling confirms that the PPAs that were signed last year were in fact entered into lawfully and that the three remaining IPPs are free to sign their PPAs. Significantly, any investment that was made after the signing of the PPAs is not under threat and the renewable energy programme in South Africa remains a viable economic opportunity for investors.

Cumulatively this round of the renewable energy programme will result in R56bn being invested in South Africa, more than 12,000 jobs being created and ultimately more than 2,200MW of clean energy being added to the grid. Had the PPAs been signed three years ago, which would have been the case but for Eskom's intransigence during the Zuma era, we would not now be facing such serious load-shedding.