Members of the consortia that signed power purchase and implementation agreements with Eskom and government on December 8 pose for a group photo with Mineral Resources and Energy Minister Gwede Mantahse (front and centre)
Photo by: Creamer Media's Donna Slater
A further 13 solar photovoltaic (PV) projects have signed agreements with Eskom and government raising to 19 the number of projects that are now set to proceed under the much-delayed fifth bid window (BW5) of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
All 19 projects, which have a combined investment value of R34.3-billion, were selected as preferred bidders in October last year, when a total of 25 wind and solar PV projects were named.
Collectively they will add 1 759 MW renewable capacity to the national grid once constructed, comprising 784 MW of onshore wind and 975 MW of solar PV.
The bid window was the first to proceed following a seven-year disruption to the REIPPPP after the then State-captured Eskom leadership refused, in 2015, to sign power purchase agreements with independent power producers.
However, the round has faced serious difficulties having been bid ahead of the surge in renewables costs that arose as a result of several Covid lockdowns in China and Russia’s invasion of Ukraine.
The projects that signed power purchase and implementation agreements on December 8 are 75 MW apiece and will collectively add 975 MW of solar PV to the national grid once constructed.
The 13 projects named at a ceremony in Pretoria included:
- Grootfontein PV 1, Grootfontein PV 2 and Grootfontein PV 3 to be built by Scatec near Touwsriver, in the Western Cape;
- The Grootspruit and the Sannaspos solar PV projects, being developed by the Engie-Pele Consortium, in the Free State, and the Graspan solar PV project, to be built by the same consortium in the Northern Cape;
- Total Mulilo’s Du Plessis Dam Solar PV 1 project in De Aar, in the Northern Cape; and
- the Kentani, the Klipfontein, the Klipfontein 2, the Leliehoek, the Braklaagte and the Sonoblomo solar facilities in Dealesville, in the Free State, being developed by the Ikamva Consortium of Mainstream, Globeleq and H1.
In September, the first three BW5 wind projects, which are being developed by EDF Renewables and its partners, H1 and Gibb-Crede, signed their project agreements, which was then followed by Red Rocket South Africa, which signed agreements for a further three wind projects in early November.
Two of the EDF projects subsequently achieved financial close in mid-November.
IPP Office head Bernard Magoro said the 13 projects were expected to reach commercial close by the end of March.
Discussions were ongoing with the other six preferred bidders “to conclude the procurement within the framework of the Request for Proposals and the law”.
Magoro also confirmed that the preferred bidders that had not yet advanced their projects to financial close under the controversial risk-mitigation procurement round had been given until the end of January to do so.