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Renewable Energy Independent Power Producer Procurement Programme – Bid Window 6, South Africa – update

Image of solar panels and wind turbines

10th May 2024

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) – Bid Window (BW) 6.

Location
Bids have been submitted across the Eastern Cape, the Free State, Limpopo, the Northern Cape, the North West and the Western Cape provinces of South Africa.

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

Project Description
The DMRE invited interested parties on April 6, 2022, to register prospective bids under REIPPPP – BW 6.

BW 6 initially had an allocation of 2 600 MW, but this was subsequently increased to 4 200 MW as part of measures announced by President Cyril Ramaphosa in July 2022 to tackle loadshedding.

In October 2022, the DMRE announced that 56 wind and solar photovoltaic (PV) projects had been submitted by prospective bidders under BW 6 across five provinces – the Western Cape (24 projects), the Eastern Cape (six projects), the Free State (11 projects), Limpopo (one project), the Northern Cape (six projects), the North West (eight projects) and the Western Cape (24 projects).

However, in December 2022, Mineral Resources and Energy Minister Gwede Mantashe announced the appointment of only five preferred bidders, with a combined capacity of 860 MW, following an evaluation of the bids.

A sixth project has also been identified as eligible and government is in discussion with the potential bidder on conditions for appointment, which, if concluded, could increase capacity of preferred projects to 1 000 MW.

All six bidders are solar PV projects, with none of the 23 wind projects submitted under BW6 attaining preferred-bidder status.

The preferred bidders are the 150 MW Kutlwano solar power plant, the 150 MW Boitumelo solar power plant; and the 120 MW Doornhoek PV facility, all in the North West; and the 240 MW Virginia solar park and the 200 MW Good Hope solar park, both in the Free State.

Potential Job Creation
Not stated.

Capital Expenditure
No value has been disclosed.

Planned Start/End Date
Not stated.

Latest Developments
The DMRE announced the first two projects that have signed project agreements and reached commercial close on April 30, 2024.

The two projects are Red Rocket’s Virginia Solar Park, in the Lejweleputswa district, which is the seventh renewable-energy project in the Free State; and AMEA Power’s $120-million Doornhoek PV, in the Dr Kenneth Kaunda district municipality, which is the sixth renewable-energy project in the North West.

The projects will contribute an additional 360 MW to the national grid once construction is completed, which is expected to take no more than 24 months. New- generation capacity expected to come online around May 2026.

These projects, developed by international investors, in partnership with local players, will attract a total investment of R4.9 billion. South African entity participation stands at 49% for every project.

The two projects have committed a total of 2 034 job opportunities (measured in job years), which includes 859 jobs during construction and 1 175 during operations. The projects have also committed R389-million to be spent on skills, supplier enterprise and socioeconomic development initiatives in the communities within which they will be located over their 20-year life span.

Key Contracts, Suppliers and Consultants
AMEA Power (Doornhoek PV); and RED Rocket (Virginia Solar Park).

Contact Details for Project Information
DMRE project officer, email query@ipp-renewables.co.za.
 

Edited by Creamer Media Reporter

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