Court dismisses bid to block renewable deals

Unions had argued that the deals would lead to coal-sector job losses and should be scrapped.
Picture: Shutterstock

A South African court on Thursday dismissed a bid to block $4.7 billion (R11.86 billion) in renewable power contracts, an energy ministry spokeswoman said, removing an obstacle to the first major investment deal under President Cyril Ramaphosa.

The last-minute legal challenge was lodged earlier this month by the National Union of Metalworkers (Numsa) and Transform RSA, a group which has lobbied for ousted president Jacob Zuma in the past.

It was opposed by the energy ministry and state power utility Eskom, which had been due to sign 27 mostly wind and solar deals with independent power producers (IPPs).

On Thursday the court in Pretoria said Numsa and Transform RSA’s legal application was not urgent and should be set aside.

Numsa and Transform RSA had argued that the deals would lead to coal-sector job losses and should be scrapped.

“Although we acknowledge the judgement we are dissatisfied,” Transform RSA president Adil Nchabeleng said, adding that his group would appeal the ruling.

A spokesman for Eskom said the power utility was ready to sign power purchase agreements with the IPPs when it received a directive from the energy ministry to do so.

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What is it with these idiots as soon as a judgement goes against them they want to appeal. What’s going to happen after the appeal is either denied or rejected, suppose they will don their t shirts , strike and destroy infrastructure an municipal assets (the municipal citizens assets in real term) and then deny that they destroyed anything. Numsa and all trade unions need to catch a wake up robotics is about to replace low level labour and even blue collar workers

$4.7 Billion = R11.86 Billion? More like R55.7 Billion. Aside from that, the only people that are benefiting from the endless cycle of court challenge, appeal, take under review, repeat ad nauseaum are the lawyers.

Oh goody. Now Eskom is forced by the ANC regime to buy electricity (86c/kWh) that its does not need and can generate cheaper (30c to 40c /kWh) . It buys this energy and transports it, loses some as heat ( typically about 15% ) en route in the transmission and step up/down and then sells it at a loss. To make up this loss, it requires HIGHER PRICES that it will recoup from the regime (MORE TAX) or the consumer. Yet everyone is shouting down with Eskom; up with renewables. Close the coal fired stations. Viva ANC. Viva Cyril.

Suckers. South Australia and Denmark pay more than R3 per kWh. Renewable paradise. Suck it up. South Africa heading that way.

Precisely!

Daylight robbery of the poor and middle class of SA. Just shows you who’s back in the driver seat of SA..

Funny the Guptas didn’t even manage such a stint!! and nothing about it in the NASPERS media.

The grand liberal thinking/selling that its a sin in to use natural resources to the benefit of people.

Rather have the people starve. Just like using the Cape water “crisis” trying in selling R5 billion of RO plants to taxpayers.

These renewable technology and finance providers are all foreign based, stealing from then little capital SA has to develop its own resources.

There is so much natural gas available in the region, Moz has the largest discoveries recently ever found but these corporate interest will not allow their development and use!

F$%*$ liberals thinking and exploiting capitalistic greed to the detriment of the country..

Precisely..

Bu hey this is a capitalistic website, not in the best interest of “Moneyweb” to publish anything to the contrary..

This program is not helping stop or fix the widening wealth gap in SA..but the contrary.

No-one other than a state can better provide basic services and infrastructure to its population, no matter what. State funding is the chapeaus for such projects, end of story.

However that is not what capitalist would like anybody to be believe, tye would like to profit from such monopolistic businesses..

It is tragic what is happening with this, it is another case looting of the poor and middle class.. no unbiased media coverage of this..and no Gupta can match this level.

Moneyweb can make a difference in SA and cultivate a bit of responsible capitalism under its readers.

I might just get blocked for this ahaha

I was surprised by your comments as I favour renewable energy purely based on the environmental perspective. however with regard to costing the below link disproves your argument (http://www.greenpeace.org/africa/en/campaigns/Climate-change/renewable-energy-myths/)

This is done by Greenpeace which would definitely be biased yet what are the chances of Eskom reducing the cost to 30-40c? Either way at this price point we are looting the middle/poor?

And to the argument of widening the ‘wealth gap’, I think more focus should be put on education and not renewable energy. So we charge the poor less and still provide below average education? So now they have more money to take out larger micro loans and still dont understand education.

I do agree third world countries should make use of the cheapest energy alternative yet Eskom has wasted unnecessary monies and lost billions so is it really the best option? So our monies are going to foreign lenders this could of been avoided if Eskom financed local renewable partners and invested in the future of SA and not just the Guptas.

And also with regard to the wealth gap this has actually been decreasing across the world. This might not be applicable to South Africa yet, however if the world has been going green and the gap has been decreasing then I see this argument invalid over the long term. https://www.ted.com/talks/hans_and_ola_rosling_how_not_to_be_ignorant_about_the_world

The world is improving and will only improve further but not if we make use of outdated energy source such as coal.

Greenpeace. Now that’s an objective, scientific, logical, unbiased, disinterested source of information of note. Not. Now for the facts:

Eskom paid an average of R2.14 per kWh for renewable energy in 2017 which it then sold at a loss. Good wealth destruction there. Makes everyone poorer except the OVERSEAS owners of the renewable energy who LAUGH all the way to the BANK.

The marginal cost of producing electricity with coal power stations in RSA is in the range of R0.30 to R0.40.

Nice picture of a CSP (concentrated solar power) in Myth 4. To replace ONE typical coal fired power station such as Kendall, Duvha i.e. produce the same energy would cover an area of 1000 square km. Not available for other use either.

Storage is a joke. Batteries are hugely expensive, have limited life and there are large losses when charging and discharging batteries.

Entities such as South Australia and Denmark who drunk the Greenpeace cool aid now have the most expensive electricity in the world. The South Australia grid falls over routinely.

End of comments.

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