The Government of South Africa, through the Department of Energy, has concluded the procured power purchase agreements (PPAs) with the private sector, after fending off a legal challenge from labour unions and pressure groups with vested interest.
The Department of Energy enacted the signing ceremony, which the Minister of Energy, Jeff Radebe, presided over. The ceremony marked the conclusion of 27 power purchase agreements under Bid Window 3.5 and 4 of the Renewable Energy Power Producer Procurement Programme (REIPPPP).
“We welcome the Department of Energy’s determination to unlock rural development and much-needed jobs particularly in the construction and manufacturing sectors, to provide assurance to the employees of the Industry and to regain investor confidence,” Brenda Martin, CEO of SAWE, said on the PPA deal.
Martin added, “South Africa’s manufacturing and construction industries, in particular, stand to benefit immediately from the conclusion of these PPAs as equipment orders can now be placed and construction contracts can now be concluded.”
The PPA deal is part in fulfilment of South Africa’s REIPPPP. The REIPPPP is aimed at expanding the scope of South Africa’s energy mix to include renewable power from independent producers with a range of clear developmental imperatives.
Effects of the delay saw several manufacturing facilities having to retrench staff due to a lack of further component orders.