The Department of Energy has once again delayed the signing of power purchase agreements (PPAs) with the renewable energy industry.
Newly appointed Energy Minister Mmamoloko Kubayi’s office has asked that the signing be delayed in order to allow her to meet with public enterprises minister Lynne Brown on the issue.
But energy expert Ted Blom says Eskom has been delaying the signing of the outstanding Independent Power Producer (IPPs) for a year now.
It's become more apparent that signing these puts Eskom under more and more pressure.— Ted Blom, Independent Energy Analyst
According to Blom, the take-or-pay model of the renewable energy contracts will create greater financial strain on the power utility amid tremendous pressure.
If Eskom signs these renewables, they will become even more unprofitable.— Ted Blom, Independent Energy Analyst
Take a listen to Ted Blom's expert analysis: