Delay in green energy deals hailed
The Coal Transportation Forum has welcomed a decision by new Energy Minister Mmamoloko Kubayi to delay signing additional agreements for the Renewable Energy Independent Power Producer Procurement Programme.
Forum spokeswoman Mary Phadi said the organisation would proceed with plans to halt the fourth round of contracts through legal means.
The South African Renewable Energy Council (Sarec) said on Tuesday that it had been informed that the signing of 37 additional agreements was to be delayed, after Kubayi indicated she first wanted to meet with Public Enterprises Minister Lynne Brown.
The contracts for small hydro-electric, solar and wind sites were expected to be signed on Wednesday.
“While we recognise the need for the new minister to get up to speed … financial closure of duly procured renewable power for 37 power purchase agreements now stands at almost two years,” said Sarec chairwoman Brenda Martin.
Phadi said on Wednesday that the forum was in the process of serving court papers to halt further deals, arguing Eskom would face R700bn in contingent liabilities.
President Jacob Zuma said in February that outstanding contracts would be signed. It is understood the renewable energy projects have impeccable empowerment credentials.
The forum marched on the Union Buildings in February demanding that Zuma reverse the announcement to conclude the 37 contracts. The Presidency responded by directing the forum into negotiations with various ministries including public enterprises and energy. These meeting were continuing, said Phadi, but the forum was still preparing a court challenge.
The forum maintains that thousands of jobs could be lost if less coal is transported by road. Eskom has contracts with 52 freight companies, transporting 40-million tonnes of coal using about 1,500 trucks in Limpopo, Gauteng and Mpumalanga.
The Department of Energy did not immediately comment on the status of the signing when asked on Wednesday afternoon.
The department is expected to announce a new date for the signing. The DA has said it would request new assurances from the minister of the new dates.
The National Union of Mineworkers has estimated up to 40,000 of its members could be affected by the closure of power stations and coal mines. While it is not opposed to renewable energy, it believes any transition should take place with efforts to protect jobs.