Minister Lynne Brown approves Eskom’s application for Power Purchase Agreements

The Minister of Public Enterprises has approved Eskom’s application to purchase additional renewable energy from Independent Power Producers.

The conclusion of the Power Purchase Agreements (PPAs) 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 (REIPPP) is critical to implementation of the national energy policy as articulated in the Integrated Resource Plan of 2010, Minister Brown said.

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

South Africans have reason to feel very proud of the progress the country has made adding renewable energy to the energy mix. There are risks to Eskom’s financial and operational stability in the medium term, among others, that must be mitigated. We are committed to reducing our carbon footprint, Minister Brown said.

I have 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, Minister Brown said.

Minister Brown said finalising amendments to the National Energy Regulation Act would enable Eskom and NERSA to efficiently and effectively resolve deadlocks relating to tariffs and regulatory frameworks by including a pre-determined appeal mechanism.

Source: Government of South Africa