Name of the Project
Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) – Bid Window (BW) 6.

Location
Bids have been submitted across the Eastern Cape, the Free State, Limpopo, the Northern Cape, the North West and the Western Cape provinces of South Africa.

Project Owner/s
Department of Mineral Resources and Energy (DMRE).

Project Description
The DMRE invited interested parties on April 6, 2022, to register prospective bids under REIPPPP – BW 6.

BW 6 initially had an allocation of 2 600 MW, but this was subsequently increased to 4 200 MW.

In October 2022, the DMRE announced that 56 wind and solar photovoltaic (PV) projects had been submitted by prospective bidders under BW 6 across five provinces – the Western Cape (24 projects), the Eastern Cape (six projects), the Free State (11 projects), Limpopo (one project), the Northern Cape (six projects), the North West (eight projects) and the Western Cape (24 projects).

The wind projects submitted include:

• Wolseley Wind Farm, Western Cape (123.9 MW)
• Langhoogte Wind Farm, Western Cape (80 MW)
• Jessa M Wind Energy, Western Cape (205.6 MW)
• Jessa Z Wind Energy Facility, Western Cape (205.8 MW)
• Haga Haga Wind Energy Facility, Eastern Cape (140 MW)
• Kwagga Wind Energy Facility 1, Western Cape (162 MW)
• Kwagga Wind Energy Facility 2, Western Cape (225 MW)
• Kwagga Wind Energy Facility 3, Western Cape (148.5 MW)
• Pienaarspoort Wind Energy Facility 1, Western Cape (180 MW)
• Pienaarspoort Wind Energy Facility 1, Western Cape (140 MW)
• Bayview Wind Farm, Eastern Cape (140 MW)
• Nuweveld North Wind Farm, Western Cape (240 MW)
• Nuweveld West Wind Farm, Western Cape (240 MW)
• Nuweveld East Wind Farm, Western Cape (240 MW)
• Ishwati Emoyeni Wind Farm, Western Cape (140 MW)
• Komsberg East Wind Farm, Western Cape (240 MW)
• Komsberg West Wind Farm, Western Cape (240 MW)
• Malabar Wind Farm, Eastern Cape (212.4 MW)
• Loperberg Wind Farm, Eastern Cape (240 MW)
• Esizayo Wind Energy Facility, Western Cape (140 MW)
• Maralla Wind West, Northern Cape (153 MW)
• Golden Valley II Wind Farm, Eastern Cape (140 MW)
• Great Kei Wind Energy Facility, Eastern Cape (140 MW)

The wind projects have a combined capacity of more than 4 100 MW.

The solar projects submitted include:

• Solar Capital De Aar 2, Northern Cape (80 MW)
• Solar Capital Stiltevrede 2, Northern Cape (100 MW)
• Doornhoek PV, Northern Cape (120 MW)
• Hoek Doornen PV A, Western Cape (240 MW)
• Hoek Doornen PV A, Western Cape (160 MW)
• Witte Wall PV A, Western Cape (240 MW)
• Ennex Solar, Western Cape (140 MW)
• Boitumelo solar power plant, North West (150 MW)
• Kutlwano solar power plant, North West (150 MW)
• Lerato solar power plant, North West (150 MW)
• Amagama solar PV, Free State (125 MW)
• Indlovu solar PV, Free State (240 MW)
• Ngonyama solar PV, Free State (240 MW)
• Keren Energy Visserspan No 1, Free State (100 MW)
• Keren Energy Visserspan No 2, Free State (100 MW)
• Keren Energy Visserspan No 3, Free State (100 MW)
• Keren Energy Visserspan No 4, Free State (100 MW)
• Virginia solar park, Free State (240 MW)
• Good Hope solar park, Free State (200 MW)
• Orion Solar One, North West (205 MW)
• Alldays solar energy facility, Limpopo (75 MW)
• Project San, Northern Cape (240 MW)
• Project Woodhouse Solar, North West (175 MW)
• Irene PV facility, Free State (200 MW)
• Lily PV facility, Western Cape (240 MW)
• Compton PV facility, Western Cape (240 MW)
• Boschrand 2, Free State (150 MW)
• Orange River solar facility, Northern Cape (50 MW)
• Salsola PV, Western Cape (240 MW)
• Hoodia PV, Western Cape (240 MW)
• Rosenia PV, Western Cape (240 MW)
• Setaria PV, North West (200 MW)
• Barleria PV, North West (80 MW)

The solar projects have a combined capacity of 5 550 MW.

Potential Job Creation
Not stated.

Capital Expenditure
No value has been disclosed.

Planned Start/End Date
The assessment of the bids started on October 5, 2022.

Latest Developments
Mineral Resources and Energy Minister Gwede Mantashe announced the appointment of only five preferred bidders, with a combined capacity of 860 MW on December 8, following the evaluation of bids made during South Africa’s latest renewables procurement round.

A sixth project has also been identified as eligible and government is in discussion with the potential bidder on conditions for appointment, which, if concluded, could increase capacity of preferred projects to 1 000 MW.

All six bidders are solar PV projects, with none of the 23 wind projects submitted under BW6 attaining preferred-bidder status.

The low conversion rate came despite BW6’s initial allocation being raised from 2 600 MW to 4 200 MW as part of measures announced by President Cyril Ramaphosa in July to tackle what has now become extreme loadshedding.

In addition, only solar projects in the North West and Free State provinces received appointment letters, with the bulk of the remaining 27 solar projects failing to secure grid access.

The projects named as preferred bids include the 150 MW Kutlwano solar power plant, the 150 MW Boitumelo solar power plant and the 120 MW Doornkop PV facility, all in the North West; as well as the 240 MW Virginia solar park and the 200 MW Good Hope solar park, in the Free State.

The IPP Office has confirmed that BW6 is now formally closed except for the engagement that would take place with the one additional eligible bidder.

IPP Office head Bernard Magoro has said that access to the Eskom grid has emerged as a major constraint during the bidding round, with the indicative capacity available in the Western, Eastern and Northern Cape provinces at the launch of BW6 in April having subsequently been absorbed by private projects.

Market dynamics have changed materially during the bid window, as a result of a reform allowing distributed generators below 100 MW to proceed without a licence – a cap that will be eliminated entirely in the coming months.

That reform has had the “unintended consequence” of grid being reserved for private projects, which Magoro has acknowledged could advance more rapidly than is possible under the REIPPPP, partly because the REIPPPP projects are backed by a government guarantee and are, thus, subject to conditions relating to ownership, local content and socioeconomic development.

Eskom transmission MD Segomoco Scheepers says that the Grid Code dictates that Eskom provide nondiscriminatory access to the network and it could, therefore, not reserve grid access for REIPPPP projects where an interest had been shown but where no financial commitment had been made.

Eskom also has no queuing system for grid access, which left the BW6 projects vulnerable, as they were unable to apply for budget quotes before being awarded preferred-bidder status, with only cost estimate letters required for bid submission.

As a result, the capacity initially indicated to be available in Eskom’s Generation Connection Capacity Assessment was no longer available by the time BW6 bidders were in a position to make such commitments.

Eskom’s latest Transmission Development Plan points to the need for a significant acceleration in grid-related investments to facilitate the integration of 53 GW of new generation capacity, mostly renewables, over the next ten years.

Covering the period from 2023 to 2032, the latest edition of the plan, which is published yearly, points to the need for the construction of 14 218 km of new high-voltage transmission lines over the period.

It also outlines the need for the deployment of 170 transformers, with a capacity of 105 865 MVA, along with 40 capacitors and 52 reactors to support stable and reliable grid operations and the integration of new generation capacity and load centres.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
DMRE project officer, email query@ipp-renewables.co.za.