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

Facebook
Twitter
LinkedIn
Reddit
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.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

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

May 28, 2024
BayWa r.e. has commissioned its first agriPV project in Spain, and has signed a power purchase agreement (PPA) with the Velux Group.
May 28, 2024
Google has signed virtual power purchase agreements (PPAs) with two Japanese companies to build 60MW of new solar capacity in Japan.
May 23, 2024
The global power price agreement (PPA) market has become a buyer’s market, according to speakers at the Renewable Energy Revenues Summit.
May 22, 2024
Fluctuations in the price of power should not dissuade investment in renewable power projects, according to speakers at this morning's event.
May 15, 2024
Ahead of Renewable Energy Revenues 2024, we spoke to John Mushriqui, founder and CEO at InRange, who will speak at this year’s event.
Premium
May 6, 2024
JP Casey explores some of the latest trends shaping Africa's solar sector, where the C&I segment in particular is surging ahead.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
May 29, 2024
11am (EDT) / 5pm (CEST)
Solar Media Events
June 4, 2024
London, UK
Upcoming Webinars
June 11, 2024
3:00 PM (BST) / 4:00 PM (CEST)
Solar Media Events
July 2, 2024
Athens, Greece