South Africa is to sign renewable energy deals with 27 independent power producers on 13th March 2018, noted Energy Minister Jeff Radebe.
According to the minister, “we are reconfirming government’s commitment, not only to renewable energy, but also to a solid partnership with the private sector.”
The contract scheduled to be signed next week, will boost the one-time world’s fastest-growing renewable-energy grid that has since been stagnated.
With the conclusion of the deal, 56 billion-rand ($4.7 billion) worth of investment will be released over the next two to three years and this will create over 60,000 jobs, 95% of which will be for South Africans stated Radebe.
Signing of the contract is long over due as state-owned electricity firm Eskom Holdings SOC Ltd. stalled for more than two years on the government-brokered deals to buy renewable power from private generation projects, with executives saying it was expensive and not always available.
On the issue of proper accountability, a senior officer in the Department of Energy, Karen Breytenbach said the agreements won’t affect Eskom’s balance sheet because the government guarantees payments on a six-month rolling basis should Eskom fail to pay producers.