Eskom will sign outstanding renewable PPAs, says South Africa’s president

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
The industry is hopeful that Zuma's address will mean that Eskom indeed does resume signing PPAs under the REIPPPP. Source: Flickr/Linh Do

Jacob Zuma, the South African president, announced on Thursday that the country’s biggest utility Eskom will indeed sign the outstanding PPAs won in the fourth round of the successful Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

Backlash had abounded once Eskom refused to sign any more renewable energy PPAs with IPPs under the programme back in late July. The utility initially told PV Tech that its reason for defaulting on the projects won were because all the variable generation integration was putting a strain on the grid. This did not sit well with the clean energy industry; with the South Africa Renewable Energy Council (Sarec) threatening legal action over the refusal, despite Eskom remaining bullish and citing overcapacity.

However, during his State of the Nation Address yesterday, Zuma said renewable energy formed an important part of the country’s energy mix. He also emphasised that the government would remain committed to signing PPAs with IPPs for all forms of energy, including coal and gas.

“Eskom will sign the outstanding power purchase agreements for renewable energy in line with the procured rounds,” he confirmed.

Clean energy advocates are hoping the president’s announcement will put an end to the impasse which had left 26 preferred bidders across a range of technologies renewable projects suspended in limbo. For their part, Sarec and SAPVIA were both pleased with the address.

“We now hope that Eskom heeds the President’s commitment to finalise these agreements and the Minister moves ahead with the announcement of the expedited round,” SAPVIA chairperson Davin Chown said.

Sarec chairperson Brenda Martin added: “We trust that there will now be rapid movement to resolve the impasse in line with the President’s directive.”

Read Next

PV Tech Premium
June 12, 2021
With South Africa faced with ongoing power cuts, Jules Scully explores the how solar PV can help decarbonise the country’s coal-heavy grid while providing energy security.
June 11, 2021
South Africa’s solar sector has welcomed a new reform that will increase the country’s licensing exemption threshold for embedded generation projects from 1MW to 100MW.
June 7, 2021
Duke Energy Sustainable Solutions has announced that construction has started on its 250MW Pisgah Ridge solar project in Navarro County, Texas.
June 2, 2021
Scatec will develop three projects in South Africa totalling 540MW of solar and 225MW / 1,140MWh of battery storage after being awarded preferred bidder status through a government tender.
PV Tech Premium
April 30, 2021
Elon Musk pitched a new vision for Tesla’s home solar-storage product this week, labelling it a “profound” alternative to the status quo. Liam Stoker analyses Tesla’s newly-described offering, the integration of Tesla’s solar and storage into a single product and explores benefits that may have been overlooked.
PV Tech Premium
April 27, 2021
The fallout from February’s winter storm in Texas could see new legislation enacted that would shift the cost of ancillary services onto renewable energy projects, potentially derailing solar deployment in a state that is currently on track to surpass California and become the US’ leading PV market. Jules Scully speaks to the market to determine the risk posed to solar as a result.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
June 15, 2021
Solar Media Events
July 6, 2021
Solar Media Events
August 24, 2021
Solar Media Events, Upcoming Webinars
October 6, 2021