On Friday, South Africa’s public enterprises minister approved an application by domestic utility Eskom to sign a series of delayed power purchase agreements (PPAs) with renewable energy independent power producers (IPPs).
The application under Section 54 of the Public Finances Management Act has been submitted by Eskom on January 11.
The utility in 2016 refused to enter into new deals with 27 IPPs due to cost issues and excess power generation capacity. It thus caused significant delays in the development of the projects, selected under bid windows 3.5, 4 and 4.5 of the country’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
The 27 projects, which include include wind, solar photovoltaic (PV) and concentrated solar power (CSP) technologies, are finally getting close to the start of construction, the South African Wind Energy Association (Sawea) said on Friday.
“Minister Brown’s approval is the last step in the process and all that is now required is for all affected parties to set a mutually suitable date for signing the 27 power purchase agreements,” Sawea said in a statement on Friday.
It was not revealed whether the power sale rates for the projects would be renegotiated below a cap of ZAR 0.77 (USD 0.064/EUR 0.051) per kWh, as previously announced.
(ZAR 10 = USD 0.832/EUR 0.667)