renewable energy

(Photo by Pablo Blazquez Dominguez/Getty Images)

Energy minister set to sign R55 billion in renewable energy contracts

South African power utility Eskom is set to finally sign on the dotted line to grow the renewable energy supply. We have the details.

renewable energy

(Photo by Pablo Blazquez Dominguez/Getty Images)

Minister of Energy Jeff Radebe is set to sign off billions in contracts with 27 independent renewable energy producers. The deals were originally set to be signed on Wednesday morning but final details held up the deal.

With the final signing set for Wednesday afternoon, the R55.92 billion in contracts could go a long way in changing the perception that government is not utilising renewable energy.

The hold up with the signing is not the only delay these deals have faced, though. Just last month, a last-minute court challenge left officials scrambling.

Maduna Ngobeni, project manager in the Independent Power Producer office at the department of energy, explained the signing delay to Fin24.

“The signing was expected to take place this morning but has been slightly delayed. We are still finalising some details of the contracts.”

The various companies that partner in the contracts will produce, biomass, solar energy and wind power to increase the country’s share of clean and renewable energy.

The National Union of Metalworkers (Numsa) and Transform RSA had approached the High Court in Pretoria asking for the partnerships to be blocked. According to Numsa, the renewable roll-out would lead to an increase in electricity costs.

With Eskom originally not being able to produce enough power for the country, cabinet approved public sector participation in 2003. The involvement was seen as a bid to boost overall energy capacity in the country.

30% of the nation’s electricity would come from independent producers. The rest? That would be up to Eskom. In 2016, Eskom refused to sign similar agreements due to the utility’s financial circumstances. In those two years, the previous Eskom board didn’t make things any easier.

While the new board is working to turn the utility around, one of the new executives is already bringing in bad press. Board member Mark Lamberti has been dragged through court after comments on “employment equity”.

Regardless, of the delays and other Eskom scandals, renewable energy is the future.