Brown gives Eskom green light to buy IPP power

Johannesburg - Minister of Public Enterprises Lynne Brown gave Eskom the go-ahead on Friday to sign outstanding power purchase agreements with independent power producers who form part of SA's independent power scheme. 

Brown approved Eskom’s application to purchase additional renewable energy from the producers involved in last bid windows of South Africa's much-hailed renewable programme.

“The conclusion of the power purchase agreements to enable the implementation of the outstanding projects under bid windows 3.5, 4 and 4.5 of the Renewable Energy Independent Power Producers Programme is critical to implementation of the national energy policy as articulated in the Integrated Resource Plan of 2010,” Brown said in a statement.

The programme largely ground to a halt when Eskom refused to sign further agreements about two years ago, citing financial woes. The decision put the skids on the programme and renewable investment flowing into the country.

On January 11 2018, Eskom submitted an application to Brown under Section 54 of the Public Finances Management Act to purchase the additional energy. The minister approved the application on Friday.

“South Africans have reason to feel very proud of the progress the country has made adding renewable energy to the energy mix," she said. "There are risks to Eskom’s financial and operational stability in the medium term, among others, that must be mitigated."

She added that South Africa is committed to reducing its carbon footprint.

Brown said she requested Eskom to work expediently to implement the decision and avoid further delays.

"I have also written to the Ministers of Energy and Finance requesting that we discuss how to address Eskom’s genuine concerns through expediting a revision of the Government Support Framework Agreement,” Brown said.

Finalising amendments to the National Energy Regulation Act would enable Eskom and national energy regulator Nersa to efficiently and effectively resolve deadlocks relating to tariffs and regulatory frameworks by including a predetermined appeal mechanism, she concluded.



* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
17.65
-1.0%
Rand - Pound
21.23
-0.9%
Rand - Euro
18.94
-0.1%
Rand - Aus dollar
12.15
-0.5%
Rand - Yen
0.13
+0.1%
Platinum
970.22
-0.4%
Palladium
1,602.19
-1.8%
Gold
1,866.74
-0.2%
Silver
22.24
-0.5%
Brent Crude
79.94
-2.8%
Top 40
73,489
-0.8%
All Share
79,583
-0.8%
Resource 10
74,088
-1.5%
Industrial 25
103,121
-0.3%
Financial 15
16,377
-1.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders