Mmamabula power was too expensive - Eskom

In July 2009, the South African utility rejected the tariff proposal contained in a Power Purchase Agreement (PPA) from CIC Energy, the Mmamabula project’s then developers. The Canadian firm mothballed the multi-billion Pula project in December 2009 citing viability issues as Eskom had been targeted to take up 75% of the project’s output. At the time, CIC Energy reported that Eskom had said it could “neither accept nor reject the PPA bid”.

On Wednesday, the South Africa electricity firm revealed that it had considered and shelved the price proposal from Mmamabula.