The Department of Energy (DoE) has postponed an announcement regarding the appointment of additional renewable-energy projects over-and-above the 17 that have already been identified following the third bid window under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

Initially, an announcement regarding the possible addition of further preferred bidders was scheduled for November 20, but the DoE has experienced delays in finalising its approach to the allocation of additional capacity for onshore wind and solar photovoltaic (PV) technologies. Therefore, it says it is now intending to make an announcement by no later than December 31, 2013.

With the addition of the 17 projects on October 29, South Africa’s portfolio of approved REIPPPP projects has officially increased to 64, representing a combined investment value of between R120-billion and R150-billion and a collective capacity of 3 933 MW.

There are currently 47 projects that have already moved through the financial-close threshold and which are at various stages of development. Some projects have even started producing electricity.

However, a total of 93 bids, representing 6 032 MW of potential capacity, were received by the August 19 submission date, and in light of the competitive responses, the DoE is considering the appointment of additional preferred bidders.

This would require a reallocation of capacity set aside for onshore wind and solar PV for future REIPPPP submission windows, as the allocation for round third had been restricted to 1 473 MW.

The preferred projects already selected represent a collective capacity of 1 471.5 MW; an allocation that is spread across seven onshore wind bidders (787 MW), six solar PV projects (450 MW), a 16.5 MW biomass project, a 18 MW landfill-gas bidder and two concentrated solar power (CSP) bidders (200 MW).

Several commentators have argued strongly in favour of adding to the third-round allocation, and Energy Minister Dikobe Ben Martins has indicated that the issue is being given serious consideration.

IDC BACKING

In the meantime, it has also emerged that the State-owned Industrial Development Corporation (IDC) has approved R6.5-billion in support for five of the projects that qualified as preferred bidders in round three.

Green industries head Rentia van Tonder reports that the development financer is a shareholder in and lender to the round’s two CSP projects, Xina and Karoshoek, which each have a capacity of 100 MW. It is now involved in four CSP projects in South Africa with a combined capacity of 350 MW.

It is also supporting two wind projects and one solar PV project.

“Bidders now proceed with the task of concluding finance arrangements with lenders and construction agreements with contractors in order to reach financial close in July 2014, the date set by the DoE for signing the power purchase agreements for these projects,” Van Tonder explains.