Eskom’s decision that it will not sign further power purchase agreements with independent power producers has alarmed the market and will have “a chilling effect” on private sector investment in the energy sector and more broadly‚ say renewable energy generators and manufacturers.
The decision‚ which was confirmed again by Eskom head of generation Matshela Koko on Thursday‚ sent shock waves through the industry and has thrown uncertainty over several bidding processes that are in midstream. The programme has to date been hailed a global success story and has attracted R193bn in private investment in five years.
Eskom’s statement came as a surprise as Energy Minister Tina Joemat-Pettersson committed only a year ago to accelerating and expanding the participation of independent power producers‚ adding coal‚ co-generation and gas to the list of projects the utility planned to procure.
South African Photovoltaic Industry Association CE Moeketsi Thobela said the “current discourse” would frighten off investors and could be devastating to the emerging renewable manufacturing industry.
“This is hardly an outcome this economy requires when the outlook is so gloomy‚” he told Business Day.
Get the full story in Business Day
Eskom's decision not to renew private power alarms market
Eskom’s decision that it will not sign further power purchase agreements with independent power producers has alarmed the market and will have “a chilling effect” on private sector investment in the energy sector and more broadly‚ say renewable energy generators and manufacturers.
The decision‚ which was confirmed again by Eskom head of generation Matshela Koko on Thursday‚ sent shock waves through the industry and has thrown uncertainty over several bidding processes that are in midstream. The programme has to date been hailed a global success story and has attracted R193bn in private investment in five years.
Eskom’s statement came as a surprise as Energy Minister Tina Joemat-Pettersson committed only a year ago to accelerating and expanding the participation of independent power producers‚ adding coal‚ co-generation and gas to the list of projects the utility planned to procure.
South African Photovoltaic Industry Association CE Moeketsi Thobela said the “current discourse” would frighten off investors and could be devastating to the emerging renewable manufacturing industry.
“This is hardly an outcome this economy requires when the outlook is so gloomy‚” he told Business Day.
Get the full story in Business Day
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