IPPs, renewable energy projects didn't cause Eskom's challenges – Ramaphosa

citizen.co.za

- citizen.co.za | 4 months ago

President Cyril Ramaphosa told parliament today that the severe operational and financial challenges that are currently being experienced by Eskom are not caused by the Independent Power Producer (IPP) programme and in particular, the renewable energy projects.

Ramaphosa was responding to a question by EFF leader Julius Malema on what the total cost is to the power utility of the IPPs that signed the latest round of power purchasing agreements (PPAs) with Eskom and, secondly, whether it has been found that the PPAs will collapse the power utility if not cancelled immediately. The president said Eskom’s challenges have been driven by a number of factors, which include massive costs and time overruns on the new build programmes of power stations.

Ramaphosa said the effects of state capture and corruption also contributed to these cost overruns.

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