South Africa to Purchase over 1 GW of Power from IPPs

South Africa will purchase 1,043 MW of renewable energy from IPPs in the second stage of its renewable energy independent power producer program (REIPPP) as the government and state-owned power utility Eskom signed agreements on May 9. The deal includes 19 projects amounting to $3.1 billion. "It has been really a long, long road," energy minister Dipuo Peters said at the signing ceremony.

 

Eskom will purchase the power at a set price once the plants are in operation, and developers are currently raising funds to build the power plants based on specifications set by the government. The first megawatts from the REIPPP are expected to be operational in November with other plants coming online by 2016.

 

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