SAWEA CEO Niveshen Govender
To ensure success in the public procurement programme, the South African Wind Energy Association (SAWEA) has called for a coordinated approach but warns that more work needs to be done.
The inaugural Energy Storage Independent Power Producer Procurement Programme (ESIPPPP) conference took place earlier this week, with a bid submission date set for the first week of July.
Only then will the preferred bidders of about 500 MW of battery storage in the Northern Cape be confirmed.
“The need for additional grid capacity in the Cape region cannot be overemphasised. . . There are no operational wind projects outside the Cape region and this is where our best wind resources lie. . .
“We are aware of just under 3 GW of wind projects being developed outside the Cape region – with the expectation that the majority of these projects are being developed for the private sector,” SAWEA CEO Niveshen Govender said on May 16.
With the procurement of 513 MW of storage, it has been reported that the transmission system will be able to add about 2 GWh across five key points in the province.
Further, State-owned utility Eskom has specifically selected the substation sites to unlock renewables capacity in the grid-constrained province, in addition to the storage projects being able to offer ancillary services.
“The previous failure to secure preferred-bidder status for any wind projects, owing to grid constraints in the Cape provinces, clearly demonstrates the urgency of added grid capacity and the value of energy storage to unlocking new wind power generation into our country’s energy supply,” Govender added.
He said SAWEA had been consistently calling on government to explore options that will strengthen or expand the grid infrastructure as quickly and efficiently as possible using mechanisms of self-build or public-private partnerships.
Govender pointed out that, as stated in Eskom’s Transmission Development Plan, new renewable energy generation capacity of between 4 GW and 5 GW must be built and connected to the grid every year.
Speaking at the event, the Department of Mineral Resources and Energy’s Independent Power Producer Office (IPPO) head Bernard Magoro indicated that, in terms of Ministerial determinations published by Mineral Resources and Energy Minister Gwede Mantashe in line with the country’s energy road map – the Integrated Resource Plan 2019 – the IPPO had been mandated to procure 28.5 GW of new generation capacity by 2030, predominantly from wind and solar photovoltaic (PV).
Further, on May 16, Mantashe highlighted in his budget vote speech that new public procurement rounds – bid windows 7 and 8 – would be opened during the second and fourth quarters, collectively providing for 10 GW of renewable energy.
“Public procurement of this magnitude should be weighed up against the value of a consistent pipeline of smaller consecutive bid windows. In particular, we would like to see the various stakeholders considering what the best option is to ensure the biggest impact balanced between new generation capacity and socio-economic benefit,” Govender explained.
To ensure success in the public procurement programme, SAWEA has called for a coordinated approach, collectively working on various aspects, including regulatory and technical solutions to support the co-location of wind, solar PV and battery energy storage systems, streamlined environmental processes with concessions applied equally, as well as practical and realistic forecasting requirements – all while ensuring grid access and continuous development.
It was also indicated that South Africa can expect to see additional battery storage procurement this year, with capacity totalling 1 230 MW across the second and fourth quarters.