POWER PRODUCERS
Too much power in Eskom’s hands undermines potential of green energy
As buyer, generator and distributor, the state-owned entity faces a conflict of interest that kills competition, writes John Oliphant
Given the decision by the Eskom board not to sign further power purchase agreements (PPAs) with Independent Power Producers (IPPs), a window of opportunity has been opened to evaluate the role of Eskom as the sole buyer of renewable energy in SA. This decision by Eskom is on the basis that demand and supply conditions, the refurbishment of its generation assets and the commercial operation of its newly installed plants — which it forecasts will be in a surplus position by 2022 without increasing the renewable energy capacity — justify its reluctance to commit to further IPPs. This stance has thrown the future of the renewable energy independent power producer programme (REIPPPP) into question and created uncertainty in the market, possibly undermining future investment into the sector. The programme has been heralded as a successful landmark initiative in boosting the economy through the expansion of private and institutional investment into the renewable energy market that, through...
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