State guarantees for renewable power projects unsustainable, says Treasury
The contingent liability for these IPPs could pose a risk to the country’s credit ratings, it says
13 June 2024 - 12:44
The Treasury has accrued a R300bn contingent liability through guarantees to independent power producers participating in the state-backed renewable energy programme.
Projects developed under the Renewable Energy IPP (REIPPP) Programme benefit from government guarantees to IPPs if Eskom fails to pay the agreed purchase price over the 20-year power-purchase agreement term...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.