Brown gives Eskom the IPP go ahead

JOHANNESBURG – Public Enterprises Minister Lynne Brown gave Eskom the green light to purchase additional power from renewable energy independent power producers (IPPs). The moves makes way for the government-drive Renewable Energy Independent Power Producer Procurement (Reippp) Programme to get back on track.

The programme that stalled after Eskom, the designated buyer of power from IPPs, refused to sign power purchase agreements with 27 IPPs, stating it had concerns about cost and current electricity overcapacity.

Brown said on a statement on Friday: “The conclusion of the Power Purchase Agreements to enable the implementation of the outstanding projects under bid windows 3.5, 4 and 4.5 of the (Reipp) is critical to implementation of the national energy policy as articulated in the Integrated Resource Plan of 2010.”

The department also said that Eskom last month submitted an application to Brown under Section 54 of the Public Finances Management Act to purchase the additional energy. The application was approved by the minister on Friday.

“South Africans have reason to feel very proud of the progress the country has made adding renewable energy to the energy mix. There are risks to Eskom’s financial and operational stability in the medium term, among others, that must be mitigated. We are committed to reducing our carbon footprint.”

The minister has requested Eskom to work Expediently to implement the decision  and avoid further delays.

 PHOTO CREDIT – Daily Maverick

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