Independent power producer Scatec is calling on Finance Minister Enoch Godongwana to provide a comprehensive update on the restructuring of power utility Eskom during his maiden Budget speech this afternoon.

Scatec sub-Saharan Africa GM Jan Fourie says the market needs an update on the utility's restructuring, as concerns about grid availability, transmission, energy procurement and regulation are critical to the structuring and development of public and private sector companies in the future.

"Similarly, the debt scenario in which the utility currently finds itself is an obstacle for the organisation to improve its financial and operating position – whether to maintain and repair existing assets or to access external financial support in the move towards the greening of the economy.

"Consistent pledges and bailing out of government agencies cannot be made to the detriment of the people and industries of the nation," he states.

He further notes that COP26 saw a commitment from global powers to support South Africa’s transition from a fossil fuel-dependent economy to one that is based on clean renewable energy generation, which contributes to international goals of climate change mitigation, as well as socioeconomic improvement for those living on the African continent.

"Ambitions and commitments should be met through clear, unambiguous messaging and action, through public engagements such as the State of the Nation Address and today’s Budget Speech," Fourie says.

He adds that he is also looking forward to updates on the macroeconomic factors critical to the success of the energy industry. 

"Key activities in the sector, such as the conclusion of power purchase agreements with sponsors in the Risk Mitigation Independent Power Producer Procurement Programme and regular Renewable Energy Independent Power Producer Procurement Programme bidding rounds would provide the country with a necessary foreign direct investment injection we so desperately need for growth and job creation," he says.

Further, Fourie notes that South Africa is well-positioned to become a major player in the global green hydrogen and ammonia space and is interested to see how government intends to create the necessary enabling environment to fast-track South Africa’s development in this area.