Eyeing economic growth, South Africa seeks to renegotiate old renewables projects

“Renewable energy projects are protected by more than 140 billion rand ($9.4 billion) of state guarantees, exposing the government to huge penalties if it were to terminate or breach existing agreements” writes Midwest Communications Inc for Putting too much pressure on them would risk deterring renewable energy investment just as the country is suffering nationwide power cuts.A simpler way to lower power prices could be to give the go-ahead for projects to refinance their debt.Jason van der Poel, a partner at law firm Webber Wentzel who represents power firms, said there were competition and procurement law obstacles to overcome.

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