'IPPs will create jobs during construction phase only'

Econometrix consultant Rob Jeffery disagrees with the number the minister of Energy Jeff Radebe has provided for the independent power producers.

The minister signed 27 agreements with IPPs after delays of more than two years.

Managing director at Econometrix Rob Jeffery says in the medium and long term there will be a reduction of jobs in the coal sector.

READ: Numsa wants workers to be compensated for life if IPP deal does not deliver jobs

I think there are three questions that need to be answered. Firstly, do we really need that electricity for the next three years? At the moment we have excess electricity so in the next three to four years there is no need to rush into such an agreement.

Rob Jeffery, Managing director at Econometrix  

Secondly, will it create further jobs? Yes it will but only the construction phase. After that you will find that there will be very little employment created by renewable power.

Rob Jeffery, Managing director at Econometrix  

And the third point that needs to be considered, is what is the impact going to be on other jobs in the economy? And this will mean in the longer term or even in the medium term what will happen is that there will be a reduction of jobs in the coal mining sector.

Rob Jeffery, Managing director at Econometrix  

READ: Jeff Radebe: IPPs will create more jobs

Jeffrey says there is sufficient argument not to look at IPPs at the moment. Renewable power is also not cheap, he adds.

Listen to more reasons as to why IPPs are rejected


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