• Nene's SAA nemesis

    No political figure seems to have the guts to speak out against Dudu Myeni, says Solly Moeng.

  • The mp3 revolution

    Ian Mann takes a look at the war between digital music and the compact disc.

  • Don't take us for fools

    It's time for businesses to stop thinking consumers are gullible, says Mandi Smallhorne.

All data is delayed
See More

State, power producers sign contract

Nov 05 2012 13:52
Pretoria - The first contracts between the government and independent power producers (IPPs) to add 1400 megawatts of renewable energy to the national grid were signed in Pretoria on Monday.

Energy Minister Dipuo Peters said Monday's signing ceremony with the 28 approved bidders for the so-called Window 1 was an auspicious day which presented various benefits for the South African economy, not limited to the energy sector.

"Our government expects this programme to make a substantial contribution to the economy in various ways.

"It [the project] will provide greatly needed energy, with both measurable and immeasurable spin-offs, including job opportunities and skills development," she said.

Window 1 describes the first round of bids sought in terms of government's 20-year Integrated Resource Plan for renewable energy, including solar, wind, biomass, and biogas projects.

It was estimated that Window 1 would bring investment worth R47bn into the energy sector, Peters said.

The projects were not limited to particular provinces, in a bid to ensure all South African communities benefited, especially the poor.

"I am proud to announce that the projects are spread across some of the most rural and least developed provinces, including the Eastern Cape, Northern Cape, Limpopo, North West, and Free State.

"Some of the IPP bidders have undertaken to set up community development initiatives that will uplift at least one community within a 50km radius of each project. Government is sure that local communities in the vicinity of the IPP projects will gain," said Peters.

The 28 companies were appointed as preferred bidders in December last year. Monday's signing of the contracts was expected to run past 20:00.

The pacts being signed included power purchase and implementation agreements.

In a statement earlier this year, the department said it estimated that the full five-window bid process "will attract project proposals to the value of R100bn over its lifetime".

Last month, power utility Eskom applied for a 16% annual increase for five years in the price of electricity - from April next year to March 2018. A portion of this  3% - was intended to support the introduction of IPPs.
eskom  |  dipuo peters  |  renewable energy  |  electricity  |  ipps


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote