The decision by Eskom not to sign any new power purchase agreements (PPAs) with independent power producers (IPPs) beyond those selected in the latest competitive bidding round could have a “chilling” effect on investment and undermine industrialisation efforts under way in the green economy, industry participants warn.
In a letter sent to Energy Minister Tina Joemat-Pettersson last week, Eskom chairperson Dr Ben Ngubane indicated that the utility was unwilling to sign further PPAs beyond the preferred projects selected under bid widow 4.5 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
This raised serious questions about the fate of projects that bid for the 1 800 MW available under the so-called expedited round of the REIPPPP, as well as the fate of the two projects, with a combined capacity of 900 MW, being evaluated under the Coal Baseload IPP Programme. It also raised questions about the legality of Eskom’s approach, as it was merely the buyer of electricity, with the Department of Energy (DoE) procuring the capacity in line with Ministerial determinations published in the Government Gazette.
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In a letter sent to Energy Minister Tina Joemat-Pettersson last week, Eskom chairperson Dr Ben Ngubane indicated that the utility was unwilling to sign further PPAs beyond the preferred projects selected under bid widow 4.5 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
This raised serious questions about the fate of projects that bid for the 1 800 MW available under the so-called expedited round of the REIPPPP, as well as the fate of the two projects, with a combined capacity of 900 MW, being evaluated under the Coal Baseload IPP Programme. It also raised questions about the legality of Eskom’s approach, as it was merely the buyer of electricity, with the Department of Energy (DoE) procuring the capacity in line with Ministerial determinations published in the Government Gazette.
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