More clarity needed on renewable projects

The private sector has
welcomed government
confirmation that renewables
are to remain part of South
Africa’s energy mix but has
called for greater clarity on the
way forward.
Delivering her Budget Vote
2017/2018 speech in parliament
last Friday, the Minister
of Energy, Mmamoloko
Kubayi, announced that the
Independent Power Producer
(IPP) office, responsible for the
Renewable Energy Independent
Power Producer Procurement
Programme, was to become
a subsidiary of the Central
Energy Fund (CEF).
She further announced that
a task team had been set up
to investigate concerns raised
by Eskom – which has delayed
the power parastatal’s signing
of IPP contracts and put the
brakes on further investment
and job creation opportunities.
Director of the South African
Renewable Energy Council
(Sarec), Mark Pickering, said
the IPP office had inspired
investment confidence because
of its transparency and good
governance policies. He raised
concerns that a shift to the
CEF could affect what had to
date been an “effective and
functioning government unit”.
Chairman of the South
African Photovoltaic Industry
Association, Davin Chown,
said it was important for
industry to get a clear sense of
government’s long-term vision
for the industry. “It’s also an
absolute priority to get the
outstanding bids approved by
Eskom,” he said.