The National Energy Regulator of South Africa (Nersa) electricity sub-committee has launched a formal investigation into power utility Eskom’s ongoing refusal to sign Power Purchase Agreements for the provision of renewable energy with 37 independent power producers (IPPs).
This in response to a complaint launched by the South African Wind Energy Association (SAWEA) about the power utility’s lack of response relating to a directive for it to sign the PPAs from the ex-minister of energy, Tina Joemat-Petersson.
Newly appointed energy minister, Mmamoloko Kubayi, requested a delay in the signing in April this year to allow her to get up to speed with the issues and to meet with the Minister of Public Enterprises, Lynne Brown. A statement from her office indicated that once the two ministers had met, a new signature deadline would be set.
CEO of SAWEA, Brenda Martin, said in a statement: “We have had confirmation from Nersa that an expedited investigation into whether Eskom is in contravention of its licence has now commenced. We await the timeline associated with this process, which could culminate in a ruling by a Nersa tribunal.”
She commented that, based on previous communications with Nersa, it was likely that the process would be concluded within two weeks. “We’d like to reiterate that our primary intention is to achieve financial closure of Power Purchase Agreements. It remains our hope that Eskom will comply with the legal framework for power purchase so that penalties do not need to be imposed on Eskom,” added Martin.
The South African Renewable Energy Council (Sarec) together with a number of individual IPPs have all subsequently joined the complaint as “interested and affected parties”.
