Energy Department delays and renegotiates IPP agreements in bid to secure nuclear

The DA is deeply disturbed by the long delays in signing the Independent Power Producers (IPPs) contracts.

Especially concerning is the announcement today by the Minister of Energy, Mmamoloko Kubayi, that the DOE will be renegotiating the tariffs for these renewable contracts.

This delay and renegotiation is most likely a smokescreen initiated by the Department of Energy and Minister Kubayi in a bid to buy time to ensure the implementation of nuclear energy. This is made abundantly clear by the freeze of all new renewable projects from October, until such time as they have thoroughly scrutinised and aligned it to the IRP and IEP.

The DA will encourage the affected stakeholders to go to court if necessary to ensure that their IPP contracts and prices are upheld. The IPP renewable energy programme is an established and internationally recognized economic model which should be defended.

The delays are costing people their jobs and could result in further closures of renewable energy companies. On top of this, the renegotiation process also sends the wrong signals to the energy industry and appears to be an attempt to stifle growth in the renewable energy sector in favour of nuclear power.

We will ensure the government pursues the most viable approach to maintain the supply of power to the country. Given our renewable resources, and job creation opportunities, South Africa should be prioritising renewable energy and not costly nuclear power.

Statement issued by Gordon Mackay MP, DA Shadow Minister of Energy, 1 September 2017