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Wind sector calls for swift action ‘key ministers’

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2018 marks the third year that the PPAs have not been signed

Picture: EPA

THE SOUTH African Wind Energy Association (SAWEA) is looking to the newly appointed ministers to get South Africa’s outstanding Power Purchase Agreements with Independent Power Producers signed.

The bulk of the 26 outstanding renewable projects, which include solar PV and wind power projects, are earmarked to be constructed in the Northern Cape, which has over 60 percent of the preferred bid allocation.

The balance of the projects are to be located in the North West (10 percent), Western Cape (six percent) and Mpumalanga (one percent).

SAWEA this week responded to President Cyril Ramaphosa’s cabinet reshuffle, which ushered cabinet veteran, Minister Jeff Radebe, into the Energy portfolio with immediate effect.

Following a year which has seen the appointment of three different energy ministers, the association welcomed the appointment of a senior minister to the portfolio.

“SAWEA welcomes the appointment of three key ministers who are directly concerned with achieving South Africa’s energy security, regaining investor confidence and realising energy choices that support national development.

“The ministers of Energy, Public Enterprises and Finance are key to ensuring South Africa’s socially and environmentally sound economic development,” Brenda Martin, CEO of SAWEA, said yesterday.

The association urged the three ministers to ensure conclusion of all duly procured outstanding Power Purchase Agreements (PPAs) with Independent Power Producers.

2018 marks the third year that the PPAs have not been signed.

“The need for swift conclusion of the long-delayed PPAs is particularly critical for the many South Africans whose jobs are at risk in a sector which has endured extended uncertainty. On behalf of the many stakeholders in South Africa’s renewable power value chain SAWEA appeals to ministers Radebe, Gordhan and Nene to ensure a firm date for duly procured PPA conclusion before March 31, 2018, when key legal documents will expire,” Martin concluded.