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Radebe rejects labour unions’ claims on IPP projects

24 February 2019, 2:16 PM  |
Raymond Akamby Raymond Akamby |  @SABCNews

Image: SABC News

Energy Minister Jeff Radebe says government will continue to back renewable energy projects and Independent Power Producers (IPP) as envisioned in its energy white paper. He was speaking at a media briefing in Johannesburg on Sunday.

Radebe has denied labour unions’ claims that IPP projects will cripple Eskom’s liquidity and threaten jobs at coal mines.

The government has signed 27 IPP projects since April last year. Radebe says they have made enormous progress in getting more IPP projects signed and are looking to get 20 000 megawatts of renewable energy by 2030.

“The renewable energy IPPs are cost neutral to Eskom and the cost is passed on to the consumers. Procurement through competitive bidding allows for the best available prices at the time. The electricity prices are highly regulated within the electricity regulation Act framework and also with the electricity pricing policy that was adopted in 2008.”

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