The South African Wind Energy Association (SAWEA) has welcomed a judgment by the Pretoria High Court, dismissing a case brought by the Coal Transporters Forum (CTF) to interdict Eskom from signing duly procured power purchase agreements (PPAs) with independent power producers (IPPs).

CTF had argued that the court should set aside all PPAs signed with IPPs to date, because it claims that the National Energy Regulator of South Africa (Nersa) authorised the PPAs without proper public consultation.

The forum also argued in its founding affidavit that government’s renewables programme would negatively impact on Eskom’s financial performance.

The High Court dismissed CTF’s assertions with costs of two legal counsel payable by the claimants, to each of the respondent entities.

The High Court also confirmed that Nersa and the Department of Energy had followed all correct procedures before finalising the PPAs.

SAWEA CEO Brenda Martin said the judgment confirmed the full policy and regulatory framework for the power sector and it covered in great detail government’s vision for the energy transition.

“In particular, we welcome the court's recognition of the long-standing origins of democratic South Africa's commitment to making an energy transition away from a coal-intensive supply system,” she said.

The Integrated Resource Plan, which has an outstanding update pending and is yet to be promulgated, envisages an overall reduction in coal-generated energy by 2030.

Law firm Webber Wentzel said in a statement that it helped to achieve the victory on behalf of IPPs. The firm said CTF sought to set aside the PPAs concluded pursuant to Bid Window 4 and the Small Projects Programme of the Renewable Energy Independent Power Producer Procurement Programme, and prevent the signing of the last three PPAs.

Webber Wentzel represented 27 IPPs.

The latest judgement follows the firm’s success last year March when the same High Court struck from the roll an urgent interdict application brought by the National Union of Metalworkers of South Africa and a Gupta-linked entity, Transform RSA, supported by the CTF, seeking to stop the Energy Minister, Eskom and the IPPs from signing PPAs.

“The High Court ruling confirms that the PPAs that were signed last year were in fact entered into lawfully and that the three remaining IPPs are free to sign their PPAs. Significantly, any investment that was made after the signing of the PPAs is not under threat and the renewable energy programme in South Africa remains a viable economic opportunity for investors. 

“Cumulatively, this round of the renewable energy programme will result in R56-billion being invested in South Africa, more than 12 000 jobs being created and ultimately more than 2200 MW of clean energy being added to the grid.  Had the PPAs been signed three years ago, which would have been the case but for Eskom's intransigence during the Zuma era, we would not now be facing such serious load-sheddin,” Webber Wentzel stated