27 Renewable Energy IPP Projects Signed

Department of Energy

27 renewable energy independent power producer (IPP) projects have been signed.

The energy minister, Jeff Radebe, announced the signing in Pretoria yesterday.

According to a statement, the 27 projects were procured under the Renewable Energy IPP Procurement Programme Bid Windows 3.5 and 4.

The minister revealed that the procurement was the biggest IPP procurement to date.

It consists of a total of R56 billion of investment and about 2300 MW of generation capacity to be added to the grid over the next 5 years.

The minister emphasised that the signing re-confirmed government’s commitment to renewable energy and a partnership with the private sector to meet South Africa’s energy needs.

He also mentioned that the Integrated Resource Plan would be finalised soon.

In terms of Eskom’s new tariff application, the minister indicated that concrete steps will be taken during the National Energy Regulator’s (NERSA) consideration of the application which will include “further allowances for the additional cost that will arise out of the Renewable Energy IPPs that are being signed today.”

Meanwhile, Eskom recently briefed parliament on its position regarding NERSA’s decision to refuse Eskom’s tariff hike application for 2018/19. NERSA has agreed to a 5.23% tariff increase.

Eskom declared that the approved increase will “negatively impact Eskom’s operational and financial sustainability, going concern status and ability to meet its debt service commitments.”

The Eskom board is seeking a review of the NERSA 2018/19 revenue decision.

In Government Gazette 41555, the energy department has announced the timetable for public hearings on Eskom’s third multi-year price determination regulatory clearing account applications totalling R66.6 billion.

The hearings kick off on 16 April 2018 in Cape Town and conclude in Johannesburg on 11 May 2018.

Sabinet Cape Town Office