South Africa - 02

South Africa: Cape Town Case to Raise Pressure Over IPPs: Implications for Eskom

Cape Town Mayor Patricia de Lille announced on 27 July that the city will take Minister of Energy Mmamoloko Kubayi to court, in a bid to be allowed to purchase electricity directly from IPPs. Although Cape Town, led by the opposition Democratic Alliance (DA), is focused on renewable energy, the court case will have implications for other IPP programs such as gas-to-power. Under a favorable verdict for the city, Eskom would no longer be designated the sole purchaser of power from IPPs. Although Cape Town’s legal bid will face significant challenges, it will also increase pressure on the ANC government to resolve the current impasse with Eskom over signing power producer agreements (PPAs) with IPPs.

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