RENEWABLE ENERGY: Alternative blueprints
The private sector is showing interest in funding SA’s renewable energy industry, writes Pedro van Gaalen
Eskom’s failure to build its next-generation coal-powered generation fleet on time and within budget is providing renewed impetus for the renewable energy (RE) sector. The utility’s precarious financial situation has also resulted in above-inflation price escalations. To plug the supply gaps and mitigate future price shocks, President Cyril Ramaphosa pledged during his state of the nation address to renew investment in the Renewable Energy Independent Power Producer Procurement Programme. Hulisani CEO Marubini Raphulu says: "SA was a leading global destination for large-scale renewable energy utility projects. Our world-class programme attracted significant investment, as it offered government-guaranteed, [consumer price index]-linked real returns, which reduced the cost of funding and made projects bankable." However, in 2015 Eskom’s then CEO, Brian Molefe, halted the programme, and government’s RE policy shifted. "Investors dislike uncertainty and were unwilling to transact in thi...
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