Although there have been calls for the scrapping of independent power producers from some quarters, including trade union the National Union of Metalworkers of South Africa and opposition party the Economic Freedom Fighters, government is determined IPPs are here to stay to ensure security of electricity supply.
Among other objections, the announcement of the unbundling of Eskom stirred fears job losses in the coal sector, particularly through the introduction of renewable IPPs in the generation space.In response, Energy Minister Jeff Radebe on Sunday held a briefing to clarify government's rationale for including renewables in the country's energy mix.
Subscribe to Fin24’s newsletter here Here are the five reasons outlined by Radebe:1. Climate changeSA committed itself to the Paris Agreement to mitigate the effects of climate change.
This means SA must make a contribution to a global effort in reducing carbon emissions and other "climate resilient" developments, Radebe said."The basic rationale behind renewable energy is therefore arresting the high negative impact of fossil fuel sources of energy such as oil and coal.
"Renewable IPPs so far have reduced carbon emissions by 33.