South African Wind Association Wants Delayed Energy Deals Signed

(Bloomberg) -- The South African Wind Energy Association has asked the government to sign power purchase agreements to move ahead with approved projects that have been delayed for a third year.

“The need for swift conclusion of the long-delayed PPAs is particularly critical for the many South Africans whose jobs are at risk in a sector which has endured extended uncertainty,” Chief Executive Officer Brenda Martin said Wednesday in an emailed statement.

The deals are part of a Department of Energy program that was held up after state-owned Eskom Holdings SOC Ltd. refused to sign the power contracts. The utility is facing a dire financial situation and weak demand for electricity.

The association welcomed this week’s cabinet changes by President Cyril Ramaphosa, which include the appointment of Jeff Radebe as Energy Minister and Pravin Gordhan to oversee six of the biggest state companies, including Eskom. The group asked for a firm date to conclude the agreements as “key legal documents will expire” on March 31.

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