State’s renewable energy programme to be finally signed off after protracted delay

THE Department of Energy were yesterday set to sign the R55.92-billion Renewable Energy Independent Power Procurement Programme projects and power purchase agreements with Eskom.

After years of dilly-dallying during former president Jacob Zuma’s era and court action by the National Union of Metalworkers of SA (Numsa), the projects will now go ahead, bringing certainty in the sector.

Numsa was worried that licensing the independent producers could result in significant job losses.

“With this important milestone, government reconfirms its commitment not only to renewable energy but also to a solid partnership with the private sector as it pursues energy’s core position in the South African economy,” the department said.

“This will bring much needed policy and regulatory certainty.”

Eskom spokesman Khulu Phasiwe said that although the matter was in the hands of the government, the power utility was “ready to sign”.

The 27 projects are expected to create more than 61 600 jobs over the next two to three years, contributing significantly to economic growth.

The first connections to the grid from the projects are likely to take place in 2020.

Of the total number of full-time jobs, mostly during plant construction, 59% will be created in the Northern Cape, 15% in the Eastern Cape and 13% in the North West. Plans to sign the agreements in mid-March were stymied by an urgent application on the eve of the signature brought by Numsa and Transform RSA for an interdict against it pending a full court hearing.

An interim interdict was not granted and the matter was postponed to last week. In the absence of an interim interdict, the signing could have proceeded but the minister’s lawyers agreed that this would be held over until the matter was finally disposed of in court.

Last Thursday Judge Dawie Fourie rejected the urgent application in the High Court in Pretoria on the grounds that there was no urgency.

Numsa spokeswoman Phakamile Hlubi-Majola said the union still had to discuss the Thursday judgment with its lawyers and plot a way forward. She was adamant, however, that the judgment did not mark the end of the road as the union was deeply concerned about the thousands of jobs that would be lost if Eskom were to shut down power stations in Mpumalanga to accommodate independent power producers. Estimates are that 30 000 jobs will be lost both at Eskom and along the value chain as a result.