Name of the Project
Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) – Bid Window (BW) 5.

Location
South Africa.

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

Project Description
Mineral Resources and Energy Minister Gwede Mantashe announced the names of 25 wind and solar preferred bidders on October 27, 2021.

The projects were procured under BW5 of the REIPPPP, which was officially launched in April.

The weighted average price across wind and solar photovoltaic (PV) projects came in at 47.3c/kWh, the lowest yet to be achieved in South Africa.

The solar PV projects had a weighted average price of 42.9c/kWh, while the wind projects came in at a weighted average price of 49.5c/kWh.

The bidders are expected to build  2 583 MW of new generating assets, about 1 600 MW for wind and 1 000 MW under solar.

The wind projects include:

• Coleskop Wind Energy Facility;
• San Kraal Wind Energy Facility;
• Phezukomoya Wind Energy Facility;
• Brandvalley Wind Farm;
• Rietkloof Wind Farm;
• Wolf Wind Farm;
• Beaufort West Wind Facility;
• Trakas Wind Facility;
• Sutherland Wind Facility;
• Rietrug Wind Facility;
• Waaihoek Wind Facility; and
• Dwarsrug Wind Facility.

The Solar PV projects:

• Grootfontein PV 1;
• Grootfontein PV 2;
• Grootfontein PV 3;
• Grootspruit Solar PV Project;
• Graspan Solar PV Project;
• Sannaspos Solar PV Project;
• Du Plessis Dam Solar PV 1;
• Kentani Solar Facility;
• Klipfontein Solar Facility;
• Klipfontein 2 Solar Facility;
• Leliehoek Solar Facility;
• Braklaagte Solar Facility; and
• Sonoblomo Solar Facility.

Another 1 600 MW of onshore wind and 1 000 MW of solar PV are expected to be sought under BW6 and will be launched only in January 2022.

BW7, initially proposed for January, will be launched before the end of 2022.

Potential Job Creation
Not stated.

Capital Expenditure
The projects have a combined investment value of R50-billion.

Planned Start/End Date
The projects are expected to be introduced into the country’s power-stressed grid within the coming 36 months.

Latest Developments
An analysis shows that six of the solar PV projects will be developed by Mainstream, three apiece by Scatec and Engie, and one by Mulilo.

Scatec was awarded preferred bidder status on three solar projects, totalling 273 MW, by the DMRE under the REIPPPP on October 28.

Under the programme the company will sell power from the solar plants under a 20-year power purchase agreement.

Scatec will own 51% of the equity in the projects, with its local black economic-empowerment partner, H1 Holdings, owning 46.5%, and a community trust holding 2.5%. Scatec will be the engineering, procurement and construction (EPC) provider and provide operation and maintenance, as well as asset management services for the power plants.

Financial close is expected in the first half of 2022, and grid connection and commercial operation by the end of 2023.
Meanwhile, 12 of Mainstream Renewable Power projects have won preferred bidder status in BW5.

The wind and solar projects, which have a total capacity of 1.27 GW, represent half of the total allocation in the window.

The Mainstream-led consortium, named 'Ikamva', which means "the future" in Xhosa, will deliver six onshore wind projects and six solar PV projects.

The wind projects include Dwarsrug (124 MW), Sutherland (140 MW) and Rietrug (140 MW), in the Northern Cape; Beaufort West (140) and Trakas (140 MW), in the Western Cape; and Waaihoek (140 MW), in KwaZulu-Natal.

The six solar PV projects include Kentani, Leliehoek, Klipfontein and Kilpfontein 2, Braklaagte and Sonoblomo, all in the Free State, and all with a capacity of 75 MW.

Key Contracts, Suppliers and Consultants
Scatec Solar (EPC provider, operation and maintenance, and management services).

Contact Details for Project Information
DMRE, Natie Shabangu, email natie.shabangu@dmre.gov.za; or Thandiwe Maimane, email thandiwe.maimane@dmre.gov.za.