File image: Minister of Energy, Mmamoloko Kubayi

CAPE TOWN - It is good news to the ears of Independent Power Producers that Eskom, will in October, sign the Power Purchase Agreements, Minister of Energy, Mmamoloko Kubayi announced today.

This comes after stakeholder engagement between the Department of Energy and the Department of Public Enterprises. Eskom refused to sign the agreements in 2016, claiming that it had an over supply of electricity and would be paying for more electricity it did not need, fin24 report.

Kubayi has revealed that, to resolve the impasse on signing of PPAs between Independent Power Producers and Eskom, a technical team was established. "We must acknowledge that the matter remains complex and there are no easy solutions to it. However, it is our commitment as government to try to find a balanced solution in the interest of all parties involved," she added.

CEO of the South African Wind Energy Association said that industry is relieved now that the date of signing PPAs has been confirmed, but there are some legal loop-holes that she is not sure how the Department of Energy will tackle.

The South Africa Photovoltaic Industry Association has welcomed the announcement by minister saying this sends a positive signal to the market that government is considering renewable energy for South Africa's energy mix. 

"The signing of the PPAs will fast track the delivery of employment opportunities, local manufacturing opportunities, social development programmes and the benefits of community ownership, all of which are common features of all REIPPPP projects" the statement read.

- BUSINESS REPORT ONLINE