One commiserates with Energy Minister Mmamoloko Kubayi, who has to deal with Eskom’s delay in signing agreements with independent power producers (Eskom "has not signed" deals with power producers, May 17). SA’s Renewable Energy Independent Power Producers Programme has been globally lauded and is a great promoter of fixed investment, but Eskom is delaying the signing of agreements to frustrate the producers into quitting. The utility puts forward pricing as an argument, but the industry understands an efficient and diversified energy supply at a predictable price trajectory will benefit faster economic growth more sustainably than the boom-and-bust risk associated with initially cheap, centrally produced energy from coal and nuclear. Eskom has acquired its own interests over its long history, which has found some alignment with state-capture agendas. Policy decisions by the government or the ANC won’t help much before there is alignment with a reform-minded board and management. It...
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