Green energy plans slump
● BMI Research lowered its forecast for the renewable energy capacity it expects South Africa to have installed by 2026 to 8.5GW from 9.9GW, due to the government’s chaotic policies.
“The latest cabinet reshuffle, which saw a new energy minister appointed — the third in less than a year — has done little to reduce policy uncertainty in the sector. We believe these factors will weigh on investor sentiment across the country’s power sector,” BMI said yesterday morning.
Previous rounds of the government’s renewable energy independent power producer procurement programme were extremely successful at attracting privatesector investment to reduce Eskom’s monopoly.
“However, significant delays of around two years to the signing of power purchase agreements between independent power producers and Eskom has delayed the expansion of the industry.”
BMI said though President Jacob Zuma appeared to remain strongly committed to building 9.6GW of nuclear capacity by 2030, “the high cost of the deal makes it unviable and that it is unlikely that any new nuclear capacity will be developed within our 10year forecast period”.