Are IPPs the solutions to power blues?
Pros and cons of electricity debate
As South Africans start another week with load-shedding hanging over their heads and President Cyril Ramaphosa asking for the public’s indulgence, independent power producers have emerged as a controversial solution to keeping the lights on.
Sowetan sourced two competing views on the subject.
Sizwe Pamla, Cosatu spokesperson, No to IPPs:
● IPPs are not a short-term solution because they do not address what is wrong with Eskom, which is power generation.
● Solar panels cannot fill the gap in the grid as they produce energy but it can be stored only in a battery.
Renewables are a good move but a long-term solution, which help address climate change and the cost of energy.
● Eskom should develop its own internal capacity to use renewable methods of generating electricity instead of buying from IPPs. IPPs are expensive and in the current system, Eskom will be bound to buy electricity at the price determined by private companies.
That high price will be passed to municipalities, and ultimately, ordinary South African. IPPs should sell to private-sector companies such as malls and mining firms as compelling Eskom to buy from these entities is a “scam”.
● Many of the IPPs have not declared where they will manufacture equipment they’ll use in the generation of electricity, which means job creation is not guaranteed.
● The process of appointing these IPPs is not transparent. Many of the IPPs are foreign companies that have local partners.
Adil Nchabeleng, Independent Energy expert, Yes to IPPs:
● It will open the market for more producers, thus creating competition for Eskom while reducing reliability on the power utility.
If an area is created between Eskom and IPPs for small businesses, that will result in more economic opportunities and development of muchneeded enterprises.
● It will ignite technological development, thus opening new opportunities for businesses.
It will grow a sector that has been monopolised by Eskom with the introduction of coal, wind, solar, gas, nuclear, hydro, biomass and biofuel.
● It will reduce the price of electricity as there will be more players in the market who will compete in price.
● If IPPs get monopolised by South Africans, it will grow the economy and SA will be able to export electricity and create jobs.