BMI lowers forecast for SA electricity capacity, thanks to Eskom’s unruliness
BMI Research lowered its forecast for the renewable energy capacity it expects SA to have installed by 2026, to 8.5 gigawatts (GW) from 9.9GW, due to the government’s chaotic policies and inability to get Eskom to follow its orders."The latest Cabinet reshuffle on October 17, which saw a new energy minister appointed [former state security minister David Mahlobo] — the third in less than a year — has done little to reduce policy uncertainty in the country’s energy sector. We believe these factors will weigh on investor sentiment across the country’s power sector," BMI said in a note e-mailed on Tuesday morning.Previous rounds of the government’s renewable energy independent power producer procurement programme (REIPPPP) were extremely successful at attracting private-sector investment to reduce Eskom’s monopoly."However, significant delays of around two years to the signing of power purchase agreements between independent power producers and Eskom under the fifth round of the REIPPP...
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