Future challenges will impact South Africa’s wind sector, economist warns
A top economist has warned the market about the challenges facing South Africa’s wind sector at a symposium organised by the South Africa Wind Energy Association (SAWEA) in Cape Town on Thursday.
Managing director at Meridian Economic, Grové Steyn, said: “Our power sector is bankrupt. Whether we like it or not, this will impact the wind industry,”
“Despite (power purchase agreements for) round four of the Renewable Energy Independent Power Producers Procurement Programme (REIPPPP) being signed, the honeymoon for wind and renewables is well and truly over.
“It’s clear that renewables cannot escape the stresses and strains playing out in the energy sector and the economy more broadly,” he added.
Steyn also commented on Eskom’s financial crisis, stating that the repercussions of this issue will be more harmful than people realise.
“It’s unlikely that the sovereign can bail out Eskom as it has done for the past few years. An Eskom default could trigger government guarantees and a sovereign downgrade, which could plunge the economy into a recession.”
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