South African wind industry questions Eskom’s force majeure

Bloomberg

South African wind energy producers questioned the legality of a decision by the state power utility to curtail purchases of their output, amid low demand caused by a nationwide lockdown to deal with the coronavirus outbreak.
The South African Wind Energy Association (SAWEA) said Eskom Holdings SOC Ltd’s decision to invoke force majeure in its contracts with the independent power producers caught them by surprise and was done without consultation. Eskom has said the producers will be compensated for lost revenue by having their contracts extended by the amount of time lost.
“The industry is seeking legal counsel on whether the reduced electricity demand as a result of Covid-19 does in fact constitute force majeure, as declared by Eskom,” SAWEA said. Experts consider reduced demand as a normal system that don’t give the utility the right to renege on obligations.