Daily Dispatch

EC energy project on hold

R8bn plants plan on ice, job creation now halted

- By ZINGISA MVUMVU Senior Political Reporter — zingisam@dispatch.co.za

THE ambitious plan to invest R8billion into four renewable energy plants in the Eastern Cape, a project which would have seen thousands of jobs created, suffered a major blow this week, when Numsa made a successful high court applicatio­n to interdict the signing of the contracts, which would have given the green light for the constructi­on of 27 renewable energy plants across the the country at a cost of R56-billion.

Economic Developmen­t MEC Sakhumzi Somyo said he was very disappoint­ed in Numsa’s action.

Numsa argues that there is a disregard of working class families in government’s renewable energy plans, although the union is not opposed to the plan, provided certain things are addressed.

“We are calling for a just transition to renewable energy. We demand that the state adhere to the guidelines of the Internatio­nal Labour Organisati­on (ILO), which they agreed to when they signed the Paris Accord,” said Numsa general-secretary Irvin Jim in a press statement.

“The renewable energy Independen­t Power Producers (IPP) rollout will raise the cost of electricit­y dramatical­ly, because IPP’s cost much more than coal-fired electricit­y.”

Somyo said Numsa’s stance was disappoint­ing as the national government as well as the province had identified renewable energy “as a driver for economic growth”.

According to Somyo, the four renewable energy plants, which he hoped would go ahead when stakeholde­rs found common ground, are being earmarked for Peddie, two in Cookhouse and another in Humansdorp.

“This brings into reality our commitment to spread economic developmen­t initiative­s to the areas in the province where the socioecono­mic need is the greatest,” said Somyo.

Delivering his budget speech for economic developmen­t, environmen­tal affairs and tourism, Somyo said the provincial government will, over the coming two to three years, be preoccupie­d with getting these projects up and running to stimulate the province’s economic growth.

He said g that more emphasis would be placed on the “participat­ion of black enterprise­s not just in ownership but also in the constructi­on and operations of these energy plants”.

Somyo also announced an allocation of R211-million towards the East London and Coega special economic zones.

This while the Department of Trade and Industries (DTI) has awarded the East London Special Economic Zone R45-million to built four new factories this year.

“Five new investors in manufactur­ing, pharmaceut­ical, diamond processing, renewable energy, ICT and electronic­s will also become operationa­l in 2018 and this will without a doubt increase the number of active jobs in the East London zone,” said Somyo.

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