South Africa - 05

South Africa: Gas IPP Program Suspended, Pending Final Electricity Plans

On 1 September, South Africa’s Minister of Energy Mmamoloko Kubayi announced that state-owned power utility Eskom will sign power producer agreement (PPAs) with the successful renewable energy independent power producers (IPPs) of Bid Windows 3.5 and 4 by the end of October 2017. The renewable sector, which has been frustrated by Eskom’s delaying tactics, applauded

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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

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South Africa: Gigaba Announces New 14-Point Plan as Eskom’s Troubles Grow

On 13 July Minister of Finance Malusi Gigaba announced a new list of planned government interventions under the “Inclusive Growth Action Plan.” While the timeline for implementing various initiatives is welcome, the plan has been criticized for its failure to address the structural issues undermining long-term growth. Likewise, the plan did not address the lack

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South Africa: Parliamentary Inquiry Likely to Expose Eskom Mismanagement

Parliament’s Portfolio Committee on Public Enterprises met on 21 June to determine the procedures for its inquiry into mismanagement at Eskom, the state-owned power utility. Eskom plays a central role in energy policy issues and has considerable political backing, enabling its long-running refusal to sign agreements with successful independent power producer (IPP) bidders. The inquiry’s

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South Africa: ANC Presidential Candidates May Drop Out for Future Influence

While Ramaphosa and Dlamini-Zuma are the two frontrunners for the ANC presidential election in December 2017, a number of less-probable candidates have emerged. Still, given Ramaphosa and Dlamini-Zuma’s shortcomings, these newcomers may ultimately become credible threats. The other main contender is ANC Treasurer General Zweli Mkhize, who could be a compromise candidate or, if not

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South Africa: Nuclear Ruling Could Further Delay LNG IPP

On 26 April the Western Cape High Court handed down a judgment that is a major setback for the nuclear procurement program and could also have implications for the LNG-to-power IPP program. Judge Lee Bozalek set aside the determination for 9,600 MW of nuclear power, and that which made Eskom the procuring agent, on the

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South Africa: MPRDA Makes Slow Progress through Provinces

Public hearings on the MPRDA Amendment Bill have taken place at several of the provincial legislatures over the past two months. The period for written comments closed on 22 March, and the final provincial public hearing is due to take place in the Northern Cape legislature on 29 March. While the legislative process is slowly

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South Africa: Eskom’s Central Role in Energy Policy Debates

Eskom will continue to play a central role in energy policy debates in 2017, especially after Minister of Public Enterprises Lynne Brown’s recent comments that appeared to support Eskom’s negative stance toward IPPs, and renewables in particular. Along with Eskom’s announcement that its turnaround strategy has resulted in improved plant availability, Brown’s statements will give

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South Africa: Political Interference: Impact on the IRP

Last week Minister of Energy Tina Joemat-Pettersson released the long-awaited update to the IRP. Much has been made of the fact that the IRP’s base case proposes delaying additional nuclear power to 2037. This is a positive development in that it represents a pushback against those driving the nuclear procurement, particularly as it comes within