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
The DMRE has reported that the postponement of financial close on the 25 wind and solar projects selected in BW5 of the REIPPPP is as a result of delays in the issuance of budget quotations from Eskom for connection to the grid.

BW5 of the REIPPPP was scheduled to close at the end of April, but the decision to delay the signing of power purchase and implementation agreements was confirmed by the IPP Office on April 28.

In an update to bidders, the IPP Office indicated that financial close had been delayed to “accommodate the issuing of budget quotations by Eskom”.

It added that, in line with Eskom timelines, the first 14 projects were now scheduled to close by the end of July, while the remaining 11 would reach financial close only at the end of September, which would be after the closing date for submissions under BW6.

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.