S Africa reaches positive decision for renewables PPAs

South Africa’s energy minister Mmamoloko Kubayi Tuesday said that a decision on a positive way forward for the much-delayed renewable energy power purchase agreements (PPAs) has been made.

Details will be revealed by the end of August, the South African Photovoltaic Industry Association (SAPVIA) said on Twitter, citing a statement by the minister at the Parliamentary Committee on Energy. Kubayi has also said that each technology has its place in the power mix, calling on stakeholders to work together for the country's energy future.

In July 2016 South African grid operator Eskom refused to enter into new deals with independent power producers (IPPs) that had won preferred bidder status in the last tenders under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The South African Renewable Energy Council (SAREC) calculates that these projects represent a combined investor value of ZAR 58 billion (USD 4.3bn/EUR 3.7bn).

Eskom supplies about 95% of South Africa’s electricity and holds a near monopoly on bulk electricity. The fear is that it is abusing its position as the operator of the grid to favour own investment in new power plants, including a potential nuclear energy project.

An inter-governmental task team told parliament in June that the signing of the PPAs cannot happen this year.

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