Name and Location
Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) – fourth window.

Location
South Africa.

Client
Department of Energy (DoE).

Project Description
Thirteen projects were accepted in the DoE’s fourth bidding window of the REIPPPP in April 2015.

The 13 projects, which will constitute 1 121 MW of installed capacity on the national grid, were selected from a tightly contested field of 77 proposals.

The preferred bidders include five wind farm projects, six solar photovoltaic (PV) projects, one hydro project and one biomass project.

The wind projects include:
• Roggeveld Wind Farm (138 MW)
• Karusa Wind Farm (142 MW)
• Nxuba Wind Farm (141 MW)
• Golden Valley Wind Farm (117 MW)
• Oyster Bay Wind Farm (142 MW).

The wind projects represent a combined capacity of 676 MW.

The solar PV projects include:
• Sirius Solar PV Project One (75 MW)
• Droogfontein 2 Solar (86 MW)
• Dyason’s Klip 1 (75 MW)
• Dyason’s Klip 2 (75 MW)
• Konkoonsies II Solar Facility (75 MW)
• Aggeneys Solar Project (40 MW).

The combined capacity of the solar PV projects that progressed to the preferred-bidder stage was 415 MW.

The 5 MW Kruisvallei Hydro was selected as the only hydro project for this round.

The biomass project named was the 25 MW Ngodwana Energy Project.

In June 2015, the DoE added another 13 solar PV and wind projects to the 13 projects selected in April under the fourth bid window. The additional bidders will add another 1 084 MW to the grid.

The additional bid-window-four projects include seven onshore wind and six solar PV developments.

The wind projects include:
• Soetwater Wind Farm (142 MW)
• Kangnas wind project (137 MW)
• Perdekraal East Wind Farm (108 MW)
• Excelsior wind energy facility (32 MW)
• Wesley-Ciskei project (33 MW)
• Copperton Wind Farm (102 MW)
• Garob Wind Farm (138 MW).

The solar PV projects include:
• Solar Capital Orange Loeriesfontein project (75 MW)
• De Wildt solar project (50 MW)
• Bokamoso solar project (68 MW)
• Zeerust development (75 MW)
• Greefspan PV Power Plant Number Two solar park (55 MW)
• Waterloo solar park (75 MW).

Jobs To Be Created
Not stated.

Value
The successful fourth-round bids are valued at an estimated R23-billion.

Duration
Commissioning of these projects was expected from November 2016.

Latest Developments
The fourth window of the REIPPPP has an additional hurdle to overcome – receipt of final and binding quotations from Eskom for grid connection – before financial closure can be concluded on many of the projects selected.

These should have been provided by State-owned power utility Eskom in April 2015, but the utility has delayed the process, owing to funding shortages and disagreements pertaining to grid upgrade costs that are to be borne by Eskom.

The South African Renewable Energy Council has argued that Eskom’s refusal to sign power purchase agreements (PPAs) for 37 projects procured in 2015, as well as a PPA for a concentrated solar power project procured in an earlier bid window, is holding back investments worth nearly R60-billion and preventing the creation of 13 000 construction jobs.

A task team comprising officials from the DoE, supported by the IPP Office, and officials from the Department of Public Enterprises, supported by executives from Eskom, has been established to find solutions for the stalemate.

Original bid-window-four projects:
Wind projects
The 138 MW Roggeveld Wind Farm, in the Western Cape, is being developed by Building Energy.

Enel Green Power RSA’s (Enel RSA) Oyster Bay (142 MW), Nxuba (141 MW) and Karusa (142 MW) wind farms have been awarded preferred bidder status.

Biotherm Energy has been awarded preferred bidder status for three projects, the 120 MW Golden Valley Wind Farm, the 45 MW Aggeneys solar PV projects and the 86 MW Konkoonsies II solar PV Facility, totaling 251 MW of installed capacity.

Solar PV projects
Scatec Solar won three fourth-round bids – Sirius Solar PV Project One, Solar PV Dyason's Klip 1 and Solar PV Dyason's Klip 2, in the Northern Cape.

Globeleq is jointly managing the construction of the 86 MW Droogfontein 2 Solar project, in the Northern Cape.

The 74 MW Konkoonsies II solar facility and the Aggeneys solar project, in the Northern Cape, will be developed by BioTherm Energy.

Hydro projects
Building Energy will develop the 4.7 MW Kruisvallei Hydro.

Biomass projects
The 25 MW Ngodwana Energy Project will be developed by Sappi and is expected to be completed in 2018.

Additional bid-window-four projects:
Preferred bidders for 13 more projects in the fourth bid round of the REIPPPP were added in June 2015.

Wind projects
A consortium led by global wind and solar company Mainstream Renewable Power has been awarded preferred bidder status by the DoE for two large-scale wind energy projects – the 140 MW Kangnas Wind Farm, in the Northern Cape, and the 110 MW Perdekraal East Wind Farm, in the Western Cape –with a total generation capacity of 250 MW under the fourth round of the REIPPPP. The projects represent an investment of about R5.9-billion.

The 33 MW Wesley-Ciskei wind project, selected as part of the enlarged fourth bid window, will be developed in partnership with landowners and farmers in the former Ciskei Homeland area, in the Eastern Cape. The project will be jointly developed by nonprofit organisation Just Energy, initially established by the Bank of America Foundation, Oxfam and InnoWind, a subsidiary of EDF Energies Nouvelles, of France. The project, which is expected to be operational towards the end of 2017, will feature ten wind turbines.

Gestamp Wind, the wind division of Gestamp Renewables, has been awarded a 20-year power purchase agreement (PPA) for its 102 MW Copperton Wind Farm, in the Northern Cape. Signing the PPA and start of construction are expected in the first quarter of 2016, with the scheduled start of operation in late 2017. The project will involve an estimated €150-million investment.

EGP RSA has been awarded preferred bidder status for the Soetwater (142 MW) and Garob (138 MW) wind farms, which will be built in areas of the Northern Cape that have significant wind resources. The projects are expected to be completed and enter operation by 2018. EGP will be investing about €340-million in the new projects.

Solar PV projects
Solar Capital has been awarded preferred bidder status for its Orange Loeriesfontein solar project, in the Northern Cape. The project is expected to be commissioned in 2018.

Renewable-energy development company SunEdison, was awarded five solar PV projects – the De Wildt, Bokamoso and Zeerust solar projects, in the North West province; and , the Greefspan PV Power Plant Number Two and Waterloo solar park project, in the Northern Cape – before it filed for bankruptcy in 2016.

Key Contracts and Suppliers
G7 Renewable Energies, BioTherm Energy, Scatec Solar, EGP, Globeleq, Building Energy, Enel Wind Power, Solar Capital, Mainstream Renewable Power and Just Energy.

On Budget and on Time?
Not stated.

Contact Details for Project Information
DoE departmental spokesperson Thandiwe Maimane, tel +27 12 444 4256, cell +27 82 450 8591, fax +27 86 581 8505 or email MediaDesk@energy.gov.za.

Companies involved in the REIPPPP fourth window:
BioTherm, tel +27 11 367 4600.
Scatec Solar CEO Raymond Carlsen, tel +47 454 11 280 or email raymond.carlsen@scatecsolar.com.
EGP, media relations, tel +39 06 8305 1, fax +39 06 8305 3771 or email ufficiostampa@enel.com.
Building Energy, tel +27 21 418 3940.
Globeleq, tel +27 21 180 4500 or email info@globeleq.co.za.
Enel Wind Power head of media relations renewable energy, infrastructure and networks, Cecilia Ferranti, tel +39 06 8305 1, fax +39 06 8305 3771 or email cecilia.ferranti@enel.com.
Mainstream Renewable Power, tel +27 21 657 4040 or email Info-southafrica@mainstreamrp.com.