IPP agreements hurt consumers
Renewable energy cannot be relied upon to meet peak demand and results in costly tariffs, writes Matshela Koko
The South African Wind Energy Association took Eskom to the National Energy Regulator of SA (Nersa) over its refusal to continue signing on the fourth round of independent power purchase (IPP) agreements. Eskom looks forward to this challenge and hopes the issues that were raised before, especially regarding pricing renewable energy projects, will come out in the open, so that all of us can discuss them and find a long-term solution. For now, let me tackle those who believe renewable energy should be rolled out at any cost to the economy. Our strategic objective is to decarbonise the electricity sector, provide universal access of electricity to the masses of our people and supply affordable electricity to grow the economy. Council for Scientific and Industrial Research (CSIR) methodology was used to show that renewables resulted in a net economic loss of R4.27bn in the first six months of 2016. This result was sent to the CSIR and is undisputed. The CSIR has subsequently alluded to...
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