Halt in IPP deal 'unfortunate and unsubstantiated'

Halt in IPP deal 'unfortunate and unsubstantiated'

The South African Renewable Energy Council (SAREC) has slammed an urgent court interdict preventing the conclusion of 27 outstanding renewable energy Independent Power Producer (IPP) contracts.

Renewable energy
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The deal was halted at the eleventh hour after an urgent court interdict was granted by the North Gauteng High Court on Tuesday.


The National Union of Metalworkers of South Africa (NUMSA) and Transform RSA argued that the IPP contracts would have a detrimental impact on the livelihoods of thousands of coal workers.


SAREC disagrees, describing the move as unfortunate and unsubstantiated.


Chairperson Terence Govender believes there is a general lack of understanding about the transition from coal to renewable energy.

"It's really an unfortunate statement and action by certain groups in the country. We support the DOE in terms of ensuring a renewable energy mix. The pricing of renewable has come down quite drastically over the past couple of years, and we have seen the benefit in South Africa."

ALSO READ: Signing of IPPs halted by urgent interdict


Concerns have been raised over the possible job losses in the sector.


NUMSA claims at least 30 000 working class families will be affected.


Govender says investigations into the exact impact still need to be conducted.

Various stakeholders in the energy sector are expected to meet with Minister of Energy, Jeff Radebe, on Tuesday morning to discuss the latest developments.

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