Eskom has come under criticism after its board took the decision not to sign any further Independent Power Producer (IPP) agreements after the current round is finalised.

Eskom says there is no need for new IPPs because the power grid is now stable.

The utility is reportedly in talks with the Department of Energy regarding the future of the IPP programme. Speaking on AM Live, Eskom’s spokesperson Khulu Phasiwe said that Eskom needs clarity from the Department of Energy on the future of IPPs.

According to Phasiwe, government decided to bring on IPPs in 2008 to help boost capacity to combat the regular loadshedding affecting the country. “Now that the power system is stabilising, and we are beginning to export our additional power, we are asking the government, do we still continue to buy more power even though we don’t really need it?”

Phasiwe explained that Eskom would continue to work with the IPPs it already has agreements with but may not sign any further agreements. “Our power stations are producing enough for our own power demand and consumption,” he said.

To date Eksom has signed just over 90 IPP projects which are producing roughly 2 145 MW. The contracted projects, including those which are unsigned, are equivalent to just over 3901 MW. The unsigned agreements will be signed on as per the current phase of the IPP programme, says Phasiwe.

With regards to renewable energy, Phasiwe mentioned that South Africa has committed to reducing its carbon footprint in line with the United Nations’ Sustainable development Goals. Renewable IPPs are assisting in achieving this objective.

He said South Africa would like to have more renewable energy projects online, so that the country can fulfil its commitment. But now that the grid is stable and Eskom has its own projects coming on steam, like the Ingula project, the utility has questioned the need to purchase more power from IPPs.

Phasiwe has denied that the decision is related to the nuclear build programme or a fear of competition. “Some people have been saying that Eskom is trying to play hardball because we don’t want competition. For us as a company, there is absolutely no competition at all.

“The renewable energy projects are participating in a different sector which is essentially the renewable space, we are participating in the base load capacity space which is mainly coal and nuclear…. There is no competition, they are supplementing each other,” says Phasiwe