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 2021.

The weighted average price across wind and solar photovoltaic (PV) projects was 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 that of the wind projects was 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 (140 MW) – EDF Renewables;
• San Kraal Wind Energy Facility (140 MW) – EDF Renewables;
• Phezukomoya Wind Energy Facility (140 MW) – EDF Renewables;
• Brandvalley Wind Farm;
• Rietkloof Wind Farm;
• Wolf Wind Farm;
• Beaufort West Wind Facility (140 MW) – Mainstream Renewable Power Projects (Ikamva);
• Trakas Wind Facility (140 MW) – Mainstream Renewable Power Projects (Ikamva);
• Sutherland Wind Facility (140 MW) – Mainstream Renewable Power Projects (Ikamva);
• Rietrug Wind Facility (140 MW) – Mainstream Renewable Power Projects (Ikamva);
• Waaihoek Wind Facility (140 MW) – Mainstream Renewable Power Projects (Ikamva); and
• Dwarsrug Wind Facility (124 MW) – Mainstream Renewable Power Projects (Ikamva).

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 (75 MW) – Mainstream Renewable Power Projects (Ikamva);
• Klipfontein Solar Facility (75 MW) – Mainstream Renewable Power Projects (Ikamva);
• Klipfontein 2 Solar Facility (75 MW) – Mainstream Renewable Power Projects (Ikamva);
• Leliehoek Solar Facility (75 MW) – Mainstream Renewable Power Projects (Ikamva);
• Braklaagte Solar Facility (75 MW) – Mainstream Renewable Power Projects (Ikamva); and
• Sonoblomo Solar Facility (75 MW) – Mainstream Renewable Power Projects (Ikamva).

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
Mantashe has stated that the 2 600 MW of renewable energy being procured under Bid Window 5 of the REIPPPP will enter into power purchase agreements in April.

BW6, for another 2 600 MW of wind and solar, will be launched at the end of March.

“Thereafter, additional bid windows, including Bid Window 7, will follow at six-month intervals,” Mantashe has said.

Further, a request for proposals for 513 MW of battery storage is expected to be released in April.

No specific timeframes have been provided for the launch of procurement processes for gas-to-power and so-called clean-coal, as catered for in the Integrated Resource Plan of 2019.

Mantashe has stated that government will address suspensive conditions set by the National Energy Regulatory of South Africa “before we can issue a request for proposal for 2 500 MW of nuclear energy”.

The DMRE recently published a terms of reference document for a service provider to develop a framework for the procurement of new nuclear capacity. The tender will close on February 25.

Key Contracts, Suppliers and Consultants
Scatec Solar (EPC provider, operation and maintenance, and management services for three solar projects); Mainstream Renewable Power Projects (six solar projects and six wind projects); Engie (three solar projects); Mulilo (one solar project); and EDF Renewables (three solar projects).

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