Purchase Power Agreement Eskom

As South Africa`s state-owned electricity supplier, Eskom has been struggling to maintain a stable and reliable power supply in recent years. The country`s growing demand for electricity, coupled with Eskom`s aging infrastructure and financial troubles, has led to frequent power outages and load shedding.

In an effort to combat this energy crisis, Eskom has been exploring alternative sources of power, such as renewable energy. One way they`re doing this is through the use of purchase power agreements (PPAs).

A PPA is a legal agreement between a power generator (such as a wind farm or solar facility) and a buyer (in this case, Eskom). The buyer agrees to purchase a certain amount of energy from the generator at a predetermined price, usually for a set period of time. This allows the generator to secure financing for their project and the buyer to diversify their energy sources.

Eskom`s use of PPAs has been a controversial topic in South Africa. Critics argue that Eskom has inflated the prices they pay for renewable energy in these agreements, leading to higher electricity prices for consumers. Others argue that the benefits of renewable energy, such as reducing carbon emissions and creating local jobs, outweigh the potential cost increase.

Despite the controversy, Eskom has continued to sign PPAs with renewable energy generators. In 2018, they signed 27 new PPAs for a total of 2.3 gigawatts of renewable energy capacity. This is a significant step towards diversifying South Africa`s energy mix and reducing the country`s dependence on fossil fuels.

As a consumer, it`s important to be aware of the impact PPAs can have on your electricity bills. While renewable energy may be more expensive in the short term, the long-term benefits of a stable and sustainable energy supply can outweigh the costs. Additionally, supporting renewable energy development can have positive environmental and social impacts.

Overall, Eskom`s use of PPAs is a significant step towards a more sustainable and reliable energy future for South Africa. While there may be challenges and controversies along the way, the benefits of diversifying the country`s energy mix are clear.

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