South Africa’s energy investment plan is completely wrong – Wind power lobby

The SA Wind Energy Association (Sawea) has labelled the new draft Integrated Resource Plan (IRP) wrong in almost every crucial respect, the City Press reported.

The new draft IRP was released two months ago and outlines South Africa’s plan for future energy investments.

While the plan does not include any plans for nuclear power and places increased emphasis on renewable energy, Sawea said the document makes unrealistic assumptions about the ability of Eskom and the South African economy.

“The entire draft IRP is premised on a revenue plan for the industry (mostly Eskom) that is unachievable and therefore not credible,” Sawea said.

“Pursuing the plan in its current form will simply increase the probability and magnitude of a financial crisis at Eskom, the Sovereign, and the economy.”

The cost of coal power is also understated in the IRP and the cost to improve Eskom’s infrastructure is excluded, Sawea said.

This follows Eskom’s recent request for a 15% tariff increase per year for a three-year period.

The state-owned power utility argued that this price increase is necessary to place it on a sustainable path.

Now read: See how much money Eskom and SAA lose every second

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South Africa’s energy investment plan is completely wrong – Wind power lobby