The South African Wind Energy Association (SAWEA) has welcomed a judgment by the Pretoria High Court, dismissing a case brought by the Coal Transporters Forum (CTF) to interdict Eskom from signing duly procured power purchase agreements (PPAs) with independent power producers (IPPs).

CTF asked the court to set aside all PPAs signed with 27 IPPs, claiming that the National Energy Regulator of South Africa (Nersa) authorised the PPAs without proper public consultation.

The forum also argued in its founding affidavit that government’s renewables programme would negatively impact on Eskom’s financial performance.

The High Court dismissed the CTF’s assertions, with the costs of two legal counsel payable by the claimants to each of the respondent entities.

The High Court also confirmed that Nersa and the Department of Energy had followed all the correct procedures before finalising the PPAs.

SAWEA CEO Brenda Martin said the judgment confirmed the full policy and regulatory framework for the power sector and it covered in great detail government’s vision for the energy transition.

“In particular, we welcome the court’s recognition of the long-standing origins of democratic South Africa’s commitment to making an energy transition away from a coal-intensive supply system.”

The Integrated Resource Plan, which has an outstanding update pending and is yet to be promulgated, envisages an overall reduction in coal-generated energy by 2030.

Law firm Webber Wentzel said in a statement that it helped to achieve the victory on behalf of IPPs. The firm said the CTF sought to set aside the PPAs concluded pursuant to Bid Window 4 and the Small Projects Programme of the Renewable Energy Independent Power Producer Procurement Programme and prevent the signing of the last three PPAs.

Webber Wentzel represented 27 IPPs.

The latest judgment follows the firm’s success last year March when the same High Court struck from the roll an urgent interdict application brought by the National Union of Metalworkers of South Africa and a Gupta-linked entity, Transform RSA, supported by the CTF, seeking to stop the Energy Minister, Eskom and the IPPs from signing PPAs.

“The High Court ruling confirms that the PPAs that were signed last year were in fact entered into lawfully and that the three remaining IPPs are free to sign their PPAs.”