Independent Power Producers are not eating Eskom’s lunch – energy expert
Independent Power Producers comprise less than 5% of Eskom sales, members of Parliament have heard.
The Portfolio Committee on Public Enterprises was on Wednesday briefed by several stakeholders in the energy industry on measures to solve Eskom’s operational and governance challenges. Among them was UCT Professor Anton Eberhard, who also chaired the Eskom Sustainability Task Team, appointed by the president in December 2018.
Responding to questions from members of Parliament, Eberhard weighed in on concerns about Independent Power Producers, particularly their costs. The first round of renewable energy projects procured in 2011 was expensive, but in subsequent years the costs of successive bid windows have declined.
Eberhard said that the new IPPs were expected to cost around 40c per kilowatt-hour. This is cheaper than Eskom’s cost of power, which is around R1.06/kWh, he noted, adding that this could essentially save Eskom money.
Read more news on News 24