Gordhan: Govt won't scrap costly renewables contracts, but will renegotiate them

fin24.com

- fin24.com | 4 days ago

Government has no plans to scrap costly contracts with renewable energy independent power producers, but is trying to renegotiate the contracts down to more reasonable prices instead, Public Enterprises Minister Pravin Gordhan has said.

The minister made the remarks while giving replies to questions posed by members of Parliament on Tuesday. Responding to a question posed by EFF MP Nazier Paulsen about whether government would exit costly contracts with independent power producers, Gordhan said that he and Mineral Resources and Energy Minister Gwede Mantashe "admit" that the first three rounds of renewable energy agreements were far more expensive than current prices.

But a process is underway by a technical team to renegotiate the contracts for a "win-win" situation.

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