Government is leaning more towards private-sector involvement in energy projects and Eskom’s restructuring as pressure mounts to spend on other priorities.Spending on energy projects over the next three years will total R218.8bn, mostly through Eskom, representing about a quarter of public-sector infrastructure spend. At the same time, public-private partnerships (PPPs) in energy, municipal solid waste and accommodation projects are going to grow, treasury says, and it is looking at ways to streamline PPPs by reducing decision-making timelines and restrictive rules. Charles Kieck, chief energy economist and CEO of independent commodity researchers Afriforesight, welcomes the budget’s silence on funds for nuclear procurement along with the renewed commitment to buy power from independent producers of renewable energy.As one of government’s "confidence-boosting measures", the minister of energy has instructed Eskom to conclude all outstanding power-purchase agreements with independent...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.