South Africa’s state-run utility Eskom received the go-ahead from the Minister of Public Enterprises, Lynne Brown, to sign outstanding power purchase agreements with independent power producers who form part of SA’s independent power scheme.
The national utility saw its application to purchase additional renewable energy from the producers involved in the last round of South Africa’s REIPPP from the minister.
“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 Renewable Energy Independent Power Producers Program is critical to implementation of the national energy policy as articulated in the Integrated Resource Plan of 2010,” Brown said in a statement.
Two years ago Eskom halted the signing of agreements, bringing the until then successful program to almost a stop. According to the company, its beleaguered financial position was the cause of the halt. However, on January 11 itsubmitted an application to Brown under Section 54 of the Public Finances Management Act to purchase the additional energy. The minister approved the application February 2.
“South Africans have reason to feel very proud of the progress the country has made adding renewable energy to the energy mix," Brown said. "There are risks to Eskom’s financial and operational stability in the medium term, among others, that must be mitigated."
Brown said she requested Eskom to work expediently to implement the decision and avoid further delays.
"I have also written to the Ministers of Energy and Finance requesting that we discuss how to address Eskom’s genuine concerns through expediting a revision of the Government Support Framework Agreement,” Brown said.