Featured

Energy Minister Mmamoloko Kubayi recently announced that Eskom will sign the Power Purchase Agreements (PPAs) with Independent Power Producers in October. The announcement comes on the completion of stakeholder engagement between the Department of Energy and the Department of Public Enterprises.

Legal wrangling commences around PPA signingA technical team has been established to resolve the impasse on signing of PPAs between Independent Power Producers and Eskom, but “the matter remains complex and there are no easy solutions to it”, the minister said. The South Africa Photovoltaic Industry Association has welcomed the announcement, saying it will bring investment, secure jobs, and create new jobs and opportunities for communities surrounding projects.

The South African Wind Energy Association (Sawea) also issued a statement welcoming the announcement, saying that industry is relieved now that the date of signing PPAs has been confirmed, but there are some legal loop-holes that the Department of Energy needs to tackle. The main one is the provision that tariffs will be renegotiated to under 77 cents/KWh.

“This condition, which requires tariff negotiating, is illegal in the Renewable Energy Procurement Programme’s rules. Sawea is looking to the minister for guidance as to how this condition will be imposed,” the association said.

Reports indicate that while Eskom has moved from 62c/kWh, only some of the preferred bidders might be able to contract at the new ceiling of 77c/kWh. The South African Renewable Energy Council (Sarec) has therefore obtained a legal opinion. According to Sarec, government is not entitled to renegotiate that tariffs the Department of Energy already agreed upon with bidders.

Minister Kubayi has said the 77c/kWh provision will “greatly assist in reducing the requirements for additional government guarantees that would impact negatively in the current economic climate and constraints in the fiscus”, but has agreed to “meet with all IPPs participants in all bid windows, to discuss issues of concerns from IPPs and for government to give feedback on concerns before the date of signing”.

The minister stated that Eskom will ensure all contracts are in place for signing on 28 October.

“We are dealing with bid window 3.5 and 4 only because they are the ones that remain to be signed. Anything outside of that we are not committing at the moment. These are approximately 26 projects that we are talking about. Other [bid windows] will have to be put on hold,” she said.

Deputy Minister Thembi Majola added that after the conclusion of bid window 3.5 and 4, the department will embark on a review process. “We do need to take time to look at the long-time implications because it has been a subsidised programme that has had a direct impact in terms of affordability, so we will be reviewing,” she said.

Image credit: http://www.sanews.gov.za/multimedia/minister-energy-mmamoloko-kubayi-briefs-media-outcomes-court-judgement

Watch the video:

Magazines

African Fusion

AfricanFusionAfrican Fusion, the official publication of the Southern African Institute of Welding (SAIW), aims to provide up-to-date insight into welding technology and the welding industry.

Capital Equipment News

Capital Equipment News is dedicated to the application of equipment and modes of transport that are used in the mining, construction, quarrying, and transport industries.

Construction World

ConstructionWorldConstruction World was first published in 1982 and has grown to become a leader in its field, offering a unique mix of editorial coverage to satisfy the diverse needs of its readers.

Electricity + Control

ElectricityandControlE + C publishes innovative, technical articles that provide solutions to engineering challenges in measurement, automation, control, and energy management.

Lighting in Design

LightingandDesignLighting in Design is a glossy, upmarket publication aimed at lighting professionals. It is the only B2B magazine in SA that is dedicated solely to the subject of lighting.

MechChem Africa

MechChemJanuary2017cover MechChem Africa supports African engineering and technical managers across the full spectrum of chemical and mechanical disciplines.

Modern Mining

ModernMiningEstablished in 2005, Modern Mining is one of SA's leading monthly mining magazines, noted for the quality and accuracy of its writing and the breadth of its coverage.

Modern Quarrying

ModernQuarryingModern Quarrying is firmly entrenched as a leading industry-specific magazine. It focuses on promoting the science and practice of quarrying and processing in southern Africa.

Sparks Electrical News

SparksElectricalNewsReadable and informative, Sparks Electrical News is the newspaper for those involved in installing and maintaining electrical supplies and equipment.

 
Full Name*
Invalid Input

Company Name*
Invalid Input

Your Email*
Invalid Input

Phone*
Invalid Input

Postal Address 1*
Invalid Input

Postal Address 2*
Invalid Input

Postal Code*
Invalid Input

Street Address 1
Invalid Input

Street Address 2
Invalid Input

Postal Code
Invalid Input

Town / City*
Invalid Input

Country*
Invalid Input

Magazine

Invalid Input

Invalid Input