Name of the Project
Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP).

Location
South Africa.

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

Project Description
The RMIPPPP, which is also known as the ‘emergency’ procurement round, is a response to the short-term electricity supply gap identified in the Integrated Resource Plan 2019.

The objective of the RMIPPPP is not only to alleviate the current electricity supply constraints but also reduce the use of diesel-based peaking electrical generators.

The programme aims to procure 2 000 MW from a range of energy sources and technologies.

The DMRE issued a request for proposal for the RMIPPPP in August 2020.

Mineral Resources and Energy Minister Gwede Mantashe released the names of the eight preferred bidders on March 18, 2021:

• the 150 MW ACWA Power Project DAO – a hybrid facility comprising solar photovoltaic (PV) and a battery energy storage system (BESS);
• a 450 MW Karpowership SA Coega facility – a gas-to-power plant based on imported liquefied natural gas (LNG);
• the 450 MW Karpowership SA Richards Bay facility – a gas-to-power plant based on imported LNG;
• a 320 MW Karpowership SA Saldanha facility – a gas-to-power plant based on imported LNG;
• the 198 MW Mulilo Total Coega facility – a hybrid plant employing solar PV and imported LNG;
• the 75 MW Mulilo Total hydra storage project – a hybrid facility comprising solar PV and a BESS;
• the 128 MW Oya Energy hybrid facility – a hybrid facility comprising solar PV, wind and a BESS; and
• the 75 MW Umoyilanga Energy – a hybrid facility comprising solar PV, wind and a BESS.

In June 2021, the DMRE announced the appointment of three additional preferred bidder projects following the completion of “value for money” negotiations with Norwegian renewables power producer Scatec.

The Scatec projects will comprise three hybrid plants in the Northern Cape comprising solar PV technology and BESSs.

To meet the dispatchable profile demanded under the RMIPPPP, the three projects – Kenhardt 1, Kenhardt 2 and Kenhardt 3 – will together produce 540 MW solar and 225 MW/1 140 MWh battery storage,  based on sites in the Northern Cape.

Scatec has indicated that the projects are the only ones selected under the RMIPPPP that rely exclusively on renewable energy, making the three-project portfolio arguably one of the biggest single-site solar-storage hybrids in the world.

The projects will include average local content of 50% during construction, South African entity participation of 51% and black ownership of 41%.

Potential Job Creation
Not stated.

Capital Expenditure
The combined investment value of the eight projects is estimated at R45-billion.

Planned Start/End Date
The projects are expected to reach financial close by no later than the end of July 2021 and be connected to the grid from August 2022.

The Scatec projects are required to achieve financial close by the end of September 2021, with grid connection by the end of 2022.

Latest Developments
The Eastern Cape Maritime Business Chamber (ECMBC) and the National African Federated Chamber of Commerce and Industry (Nafcoc) Nelson Mandela Bay (NMB) region said on July 5 that it would appeal the decision by the Department of Forestry, Fisheries and the Environment (DFFE) not to approve Karpowership South Africa’s (SA’s) environmental-impact assessments (EIA) for its three powership-based gas-to-power projects, proposed for development at the ports of Richards Bay, Ngqura and Saldanha Bay.

The EIA applications were submitted in October 2020 ahead of the closing date for bidding under the DMRE’s RMIPPPP.

The organisations have stated that Karpowership SA conducted a robust public participation process, met all South Africa’s stringent environmental requirements and is well positioned to address any other concerns in full.

The ECMBC and Nafcoc NMB engaged Karpowership SA on the matter and were satisfied with the reports and information presented.

While the organisations have 20 days to respond to the DFFE’s notification, they are working to ensure they submit appeals as soon as possible to expedite the resolution.

The organisations say that they do not accept the DFFE’s ruling and do not believe that allowing detractors the opportunity to delay the RMIPPPP will benefit the economy. 

Key Contracts, Suppliers and Consultants
None stated.

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