Name and Location
Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) – third window, nationwide, South Africa.

Client
Department of Energy (DoE).

Project Description
Seventeen renewable-energy developers have been appointed as preferred bidders, following the conclusion of bid submissions for the third round of the REIPPPP.

The wind projects listed include:

• Gibson Bay Wind Farm (111 MW)
• Longyuan Mulilo De Aar Maanhaarberg Wind Energy Facility (96 MW)
• Longyuan Mulilo De Aar 2 North Wind Energy Facility (139 MW)
• Nojoli Wind Farm (87 MW)
• Khobab Wind Farm (138 MW)
• Noupoort Mainstream Wind (79 MW)
• Loeriesfontein 2 Wind Farm (138 MW).

The wind projects collectively represent 787 MW of capacity.

The solar photovoltaic (PV) projects named are:

• Tom Burke solar park (60 MW)
• Pulida solar park (75 MW)
• Mulilo Sonnedix solar PV (75 MW)
• Mulilo Prieska solar PV (75 MW)
• Adams solar PV 2 (75 MW)
• Electra Capital (75 MW).

The combined capacity of the solar PV projects that progressed to the preferred-bidder stage was 435 MW.

The preferred concentrated solar power (CSP) bidders include Abengoa with its Xina parabolic trough CSP South Africa (100 MW), joint venture FG Emvelo’s Karoshoek project and Cobra Energia (100 MW).

One landfill gas bidder, the Johannesburg landfill gas-to-electricity project, with a capacity of 18 MW; and one biomass bidder, the Mkuze biomass project, with a capacity of 16 MW, were also named.

Value
Not stated.

Duration
The winning bidders are expected to sign project agreements with the DoE in November this year, after which developers will have about one month to finalise all documentation and foreign-currency hedging before project roll-out is set to begin.

Latest Developments
Manufacturers of renewable-energy inputs have called on government to urgently finalise the financial closure for the 17 projects identified as preferred bids following the third procurement round under the REIPPPP.

It is estimated that successful closure could represent a R10-billion opportunity for the local supply industry, with the first two REIPPPP bidding rounds having facilitated investments worth about R120-billion for foreign and domestic independent power producers.

The third-round preferred bidders were identified on October 29, 2013, and the projects were initially scheduled to reach financial close on July 30, 2014.

However, financial close was subsequently delayed, primarily as a result of grid-connection problems and a senior Department of Energy official recently indicated that the revised deadline of the end of November might also be missed.

In a statement released by the South African Renewable Energy Council, green-economy manufacturers have warned that the viability of their facilities, together with the accompanying jobs, could be threatened unless there is finality before year-end.

The delays are adversely affecting for wind-tower manufacturers.

Similar distress is building in the solar PV sector, where module manufacturers, such as Jinko Solar, SolaireDirect and ARTsolar have collectively invested R245-million in facilities in Cape Town and Durban over the past four years. The investments have created 510 jobs.

CSP developers are equally concerned, owing to the outcome of the CSP-only tender, which closed in March, not having been announced yet.

Speaking at a recent CSP Leadership Dialogue, European Solar Thermal Electricity Association president Dr Luis Crespo said certainty was vital to ensure the industrialisation, localisation, job creation spin-offs from CSP investments.

Disquiet has also been expressed about the current uncertainty surrounding bid-window four, under which preferred bidders are scheduled to be named on November 24.

Key Contracts and Suppliers
Futuregrowth, Rand Merchant Bank (RMB), Enel Green Power, Mainstream Renewable Power, Abengoa, Cobra Energia, Aurora Power Solutions, Total SA, Mulilo Renewable Energy, Energ-G, Red Cap, Mainstream Renewable Power, African Clean Energy Developments, FG Emvelo and Navosyn.

On Budget and on Time?
Not stated.

Contact Details for Project Information
DoE departmental spokesperson Thandiwe Maimane, tel +27 12 444 4256, cell +27 82 450 8591, fax +27 86 581 8505 or email MediaDesk@energy.gov.za.
Mainstream Renewable Power, Emmet Curley, tel +353 1 290 2027 or email emmet.curley@mainstreamrp.com.
Futuregrowth, tel  +27 21 659 5300, fax +27 21 659 5333 or email  info@futuregrowth.co.za.
Enel Green Power international press officer Roberta Vivenzio, tel +39 06 8305 1, fax +39 06 8305 3771 or email roberta.vivenzio@enel.com.
Abengoa communications department Patricia Malo de Molina Meléndez, tel +34 954 93 71 11 or email communication@abengoa.com.
Cobra Energia, tel +91 456 95 00, fax +91 456 94 50 or email central@grupocobra.com.
Mulilo Renewable Energy, tel +27 21 934 5268, fax +27 21 935 0505 or email info@mulilo.com.
RMB, tel +27 11 282 8000, fax +27 11 282 8008 or email info@rmb.co.za.
Aurora Power Solutions, tel +27 21 421 9764, fax +27 865 138 648 or email info@apsolutions.co.za.
FG.de, tel +49 941 200009-0, fax +49 941 200009-99 or email info@fg.de.
Emvelo, tel +27 11 523 6299, fax +27 11 784 0285 or email admin@emvelo.co.za.
ABB Power Products and Systems head of communications Harmeet Bawa, tel +41 43 317 6480, fax +41 43 317 6482 or email harmeet.bawa@ch.abb.com.
Building Energy Development Africa, tel +11 887 4364.