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South Africa’s Renewable Energy Future At Crossroads

South Africa’s power utility Eskom has once again refused to sign power purchase agreements with renewable energy project developers, and this time it seems to have the complete backing of the government.

Recently, an inter-governmental team informed the South African Parliament that Eskom is facing some challenges which are preventing it from signing PPAs with renewable energy project developers who had secured projects through competitive auctions.

One of the challenges, as quoted by the team, is oversupply in the grid. This directly highlights the poor planning and foresight of the government which launched, and then expanded, the Renewable Energy Independent Power Producers Procurement Programme.

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