Power to the people
Private power-generation programme gets a boost after change of leadership, writes Johann Barnard
Some of the swift actions of President Cyril Ramaphosa have reinvigorated the economy. One beneficiary is the renewable energy independent power producer procurement programme (Reipppp), which ground to a halt two years ago.In 2016 Eskom baulked at signing round-four power-purchase deals, claiming the programme was unaffordable.The power utility cut a lonely figure in its opposition to a programme that has been lauded as SA’s most successful public/private partnership. In the five years to 2016, about R200bn had flowed into it.Paul Semple, portfolio manager of Futuregrowth’s Power Debt Fund, describes this hiatus as a lost opportunity.As an early backer, Futuregrowth has an exposure just short of R7bn through 24 IPPs participating in the programme."The biggest loss is the reputational damage that’s been caused to the programme," he says. "It would be difficult to measure in rand terms, but it’s probably best quantified as the loss of potential growth in fixed investment that was rid...
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