IPPs not the reason for Eskom’s loss

Eskom is not borrowing money to buy electricity generated by IPPs or for funding the construction of the IPPs.

Energy minister, Jeff Radebe, says Independent Power Producers (IPPs) are not the reason for Eskom’s annual loss. The minister also said government will not renegotiate power purchase agreements (PPAs) with IPPs currently n place with the department of energy’s Renewable Energy Independent Power Producers (REIPP) programme.

This announcement comes after public enterprises minister Pravin Gordhan last week indicated that government might seek to renegotiate the high tariffs agreed upon with the successful bidders. 

Radebe was speaking at a briefing in Pretoria on Sunday, where he explained the rationale behind why the country has renewable energy as part of its energy mix. 

Thomas Garner, chairperson of the  South African Independent Power Producers Association says the minister’s announcement will ease tensions over IPPs. 

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