The South African Renewable Energy Council (Sarec) has welcomed the confirmation by Finance Minister Pravin Gordhan that the continuation of South Africa’s independent power producer (IPP) programme was imperative, given the need to boost investment in the short term.
In a statement following Gordhan’s 2017 Budget speech on Wednesday, Sarec said both President Jacob Zuma and Gordhan “have now confirmed that Eskom must conclude the outstanding power purchase agreements (PPAs)” with IPPs, which it is currently refusing to sign.
Sarec said the delay in signing PPAs for the fourth bid round had caused an extended delay to the renewables programme, preventing the entry of R58-billion into the economy and stalling the creation of over 13 000 construction jobs.
“With 35% of the labour force unemployed, economic growth in the doldrums and poverty concentrated in townships and rural areas, South Africa’s renewable power programme is well-placed to drive the economy forward,” said Sarec chairperson Brenda Martin.
The Department of Energy reports that the renewables programme has, to date, brought in $14-billion of foreign direct investment and created over 20 000 construction and 35 000 operational jobs.