JOHANNESBURG – The National Treasury on Wednesday said the value of signed independent power producers (IPPs) contracts would amount to R146.9 billion by next month.
The government had committed to buy up to R200bn in renewable energy from IPPs.
Finance Minister Tito Mboweni, however, shied away from commenting on the Department of Energy (DOE) plans to renegotiate some of the IPPs.
Last week the DOE told legislators that it wanted to renegotiate with companies that won the first two rounds of renewable energy procurement.
Peter Attard Montalto, the head of capital markets research at Intellidex, said that the idea of renegotiating IPP costs was somehow to lessen the burden on Eskom, or to make room in the tariff for larger Eskom tariff increases by reducing compensation for IPPs.