IPP deals catalyst for renewable energy growth

In May, Eskom signed two electricity power purchase agreements with IPPs and is expected to conclude another four soon. The contracts form part of the medium-term power purchase programme, one of two programmes aimed at engaging private power producers, from which Eskom is permitted by the National Energy Regulator of South Africa (Nersa) to buy electricity.

"This is a significant first step for the independent power production industry in South Africa and effectively signals the start of independently-generated electricity forming part of the South African energy mix. It is encouraging that changes to legislation are now resulting in private projects going ahead and Solairedirect Southern Africa is hopeful the renewable energy industry will follow behind shortly," says Solairedirect Southern Africa MD Ryan Hammond.