Kubayi sets deadline for Eskom to sign power purchase agreements

Negotiations with the renewable energy power producers reached a deadlock when Eskom refused to sign the agreements.

FILE: Energy Minister Mmamoloko Kubayi. Picture: @Energy_ZA/Twitter

JOHANNESBURG - Energy Minister Mmamoloko Kubayi has announced that Eskom will conclude power purchase agreements with independent producers by the end of October.

Negotiations with the renewable energy power producers reached a deadlock when Eskom refused to sign the agreements because the prices were too high at a time of energy surplus.

Kubayi says Eskom has until 28 October to sign the power purchase agreements with the independent producers.

She says the energy department and independent power producers will renegotiate tariffs but they won’t exceed 77 cents per kilowatt hour.

Kubayi says the power utility has excess generation capacity and based on the current demand patterns the situation will remain so for the next four years.

As a result, the majority of the projects will only be commissioned closer to 2021.

Kubayi has committed herself to continue to meet with the independent power producers to address their concerns.

(Edited by Zamangwane Shange)