Public Enterprises Minister Lynne Brown says that South Africa is currently adding electricity capacity to the grid at rate higher than what is required and argues that the “current trajectory” could be detrimental to consumers.
She asserts, therefore, that it is “critical that the Integrated Resource Plan (IRP) is concluded so we can have a plan that offers maximum protection for consumers”.
“So with low volumes, the price of electricity will have to rise to sustain the required level of revenue, meaning consumers will have to pay more for electricity.”
Her argument appears to gel with one that has been made previously by Eskom, which has argued that the pace and scale of new independent power producer (IPP) connections, particularly renewables projects, be curtailed.
South Africa’s highly acclaimed Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) was thrown into doubt earlier this year when the State-owned utility wrote to Brown and Energy Minister Tina Joemat-Pettersson calling for guidance before signing new power purchase agreements.
Read more.....
She asserts, therefore, that it is “critical that the Integrated Resource Plan (IRP) is concluded so we can have a plan that offers maximum protection for consumers”.
“So with low volumes, the price of electricity will have to rise to sustain the required level of revenue, meaning consumers will have to pay more for electricity.”
Her argument appears to gel with one that has been made previously by Eskom, which has argued that the pace and scale of new independent power producer (IPP) connections, particularly renewables projects, be curtailed.
South Africa’s highly acclaimed Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) was thrown into doubt earlier this year when the State-owned utility wrote to Brown and Energy Minister Tina Joemat-Pettersson calling for guidance before signing new power purchase agreements.
Read more.....
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