By Staff Writer
The financial backers of South Africa’s independent power producers are reeling from Energy Minister Mmamoloko Kubayi recent apparent hit-and-run attack on them, according to City Press.
Last week, Kubayi announced they must all renegotiate their previously-agreed tariffs down to 77c/kilowatt-hour.
This announcement affects 27 projects representing at least R60 billion in capital expenditure.
The department of energy simply endorsed Eskom’s attempt to “squash” South Africa’s flagship public-private partnership initiative – the renewable energy independent power producer (IPP) purchase programme, Mark Pickering, managing director of solar industry lobby group Sapvia, told City Press.
National Treasury has R200 billion in renewable energy purchase programme guarantees on its books, even before the still unbuilt projects now being fought over enter the picture.