Name and Location
Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) – third window, nationwide, South Africa.

Client
Department of Energy (DoE).

Project Description
Seventeen renewable-energy developers have been appointed as preferred bidders, following the conclusion of bid submissions for the third round of the REIPPPP.

The wind projects listed include:

• Gibson Bay wind farm (111 MW)
• Longyuan Mulilo De Aar Maanhaarberg wind energy facility (96 MW)
• Longyuan Mulilo De Aar 2 North Wind energy facility (139 MW)
• Nojoli wind farm (87 MW)
• Khobab wind farm (138 MW)
• Noupoort Mainstream Wind (79 MW)
• Loeriesfontein 2 wind farm (138 MW)

The wind projects collectively represent 787 MW of capacity.

The solar photovoltaic (PV) projects named are:

• Tom Burke solar park (60 MW)
• Pulida solar park (75 MW)
• Mulilo Sonnedix solar PV (75 MW)
• Mulilo Prieska solar PV (75 MW)
• Adams solar PV 2 (75 MW)
• Electra Capital (75 MW)

The combined capacity of the solar PV projects that progressed to the preferred-bidder stage was 435 MW.

The preferred concentrated solar power (CSP) bidders include Abengoa with its Xina parabolic trough CSP South Africa (100 MW), joint venture FG Emvelo’s Karoshoek project and Cobra Energia (100 MW).

One landfill gas bidder, the Johannesburg landfill gas-to-electricity project, with a capacity of 18 MW; and one biomass bidder, the Mkuze biomass project, with a capacity of 16 MW, were also named.

Value
Not stated.

Duration
The winning bidders are expected to sign project agreements with the DoE in November this year, after which developers will have about one month to finalise all documentation and foreign-currency hedging before project roll-out is set to begin.

Latest Developments
Financial close for bid window three under South Africa’s REIPPPP has been extended from the end of July to November, Energy Minister Tina Joemat-Pettersson has announced.

Delivering her Budget Vote in Parliament, the Minister said the decision to shift the deadline had been guided by factors such as the volatility of the rand, and had been made following consultations with National Treasury and the South African Reserve Bank.

“This will also allow Eskom to prepare adequately for the connection of these providers to the grid as planned,” she added.

Projects sanctioned under bid windows one and two, meanwhile, are 95% on track, with an estimated 350 MW more green power that will come on line in this financial year, in addition to the current 600 MW.

Joemat-Pettersson also confirmed that the closing date for bid window four remained August 18 and that progress was being made in dealing with constraints to the small projects of between 1 MW and 5 MW.

The DoE launched a process in 2013 to buy 200 MW from small-scale solar, wind, biomass and landfill gas projects. However, the process had stalled as a result of “challenges” in securing the equity funding for the projects.

The department has taken the initiative to develop standard documents for these projects to reduce transaction costs, and proposed a dedicated fund to assist small independent power producers (IPPs) with transaction costs.

“I want to give the small IPP entities and developers the assurance that the fund will be up and running by February 2015,” the Minister said.

Key Contracts and Suppliers
Futuregrowth, Rand Merchant Bank (RMB), Enel Green Power, Mainstream Renewable Power, Abengoa, Cobra Energia, Aurora Power Solutions, Total SA, Mulilo Renewable Energy, Energ-G, Red Cap, Mainstream Renewable Power, African Clean Energy Developments, FG Emvelo and Navosyn.

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.
Mainstream Renewable Power, Emmet Curley, tel +353 1 290 2027 or email emmet.curley@mainstreamrp.com.
Futuregrowth, tel  +27 21 659 5300, fax +27 21 659 5333 or email  info@futuregrowth.co.za.
Enel Green Power international press officer Roberta Vivenzio, tel +39 06 8305 1, fax +39 06 8305 3771 or email roberta.vivenzio@enel.com.
Abengoa communications department Patricia Malo de Molina Meléndez, tel +34 954 93 71 11 or email communication@abengoa.com.
Cobra Energia, tel +91 456 95 00, fax +91 456 94 50 or email central@grupocobra.com.
Mulilo Renewable Energy, tel +27 21 934 5268, fax +27 21 935 0505 or email info@mulilo.com.
RMB, tel +27 11 282 8000, fax +27 11 282 8008 or email info@rmb.co.za.
Aurora Power Solutions, tel +27 21 421 9764, fax +27 865 138 648 or email info@apsolutions.co.za.
FG.de, tel +49 941 200009-0, fax +49 941 200009-99 or email info@fg.de.
Emvelo, tel +27 11 523 6299, fax +27 11 784 0285 or email admin@emvelo.co.za.
ABB Power Products and Systems head of communications Harmeet Bawa, tel +41 43 317 6480, fax +41 43 317 6482 or email harmeet.bawa@ch.abb.com.
Building Energy Development Africa, tel +11 887 4364.