LETTER: Tread carefully with renewable contracts
The renegotiation of electricity tariffs with independent power producers could prove costly to SA’s economic growth prospects
The recent comment by public enterprises minister Pravin Gordhan that the government will “renegotiate” contracts with companies that won the first two rounds of SA’s renewable energy independent power producer procurement programme will not afford SA the opportunity to create value, especially on the job creation front (“Pravin Gordhan Seeks New Deal For Old IPPs” (February 15). The last thing needed in this current crisis is a “renegotiation” of electricity tariffs with renewable energy independent power producers, given the urgent need to stabilise supply of power to our economy. Renewable energy is already cost-effective and prices globally continue to drop. A sustained price decline in electricity tariffs, particularly through the procurement of efficient renewable energy technology, is what SA needs to attract much-needed foreign direct investment, to stimulate job creation. Data from the department of energy shows that the renewable energy independent power producer procureme...
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