Energy regulator to investigate Eskom

File: NERSA has agreed to investigate power utility Eskom's refusal to sign power purchase agreements. Photo: AFP / Gianluigi Guercia

• Editor's note: This article is updated each time new information becomes available.

CAPE TOWN - South Africa's energy regulator has agreed to investigate power utility Eskom's refusal to sign power purchase agreements with independent power producers, the South African Wind Energy Association (SAWEA) said on Thursday.

SAWEA last October asked energy regulator NERSA to investigate Eskom’s unwillingness to finalise agreements which it said had delayed 2,942 megawatts in new solar and wind projects.

"We have had confirmation from NERSA that an expedited investigation into whether Eskom is in contravention of its licence, has now commenced," said Brenda Martin, chief executive of SAWEA.

Some of the projects have been waiting for financial closure for more than two years and SAWEA estimates they would inject some R58-billion of investment into the economy.

"Our primary intention is to achieve financial closure of power purchase agreements. It remains our hope that Eskom will comply with the legal framework for power purchase, so that penalties do not need to be imposed on Eskom," Martin said.

An Eskom spokesman was not available for immediate comment.

Reuters

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