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

Location
South Africa. The preferred-bidder projects are located in the Northern Cape, Western Cape, Eastern Cape and KwaZulu-Natal. The Karpowership SA Coega project is in the Eastern Cape, Karpowership SA Richards Bay is in KwaZulu-Natal and Karpowership SA Saldanha is in the Western Cape.

Project Owner/s
The programme is administered by the Independent Power Producers Office as a programme of the Department of Electricity and Energy (DEE). It was launched by the former Department of Mineral Resources and Energy (DMRE). Eskom and, where applicable, the National Transmission Company South Africa, are the power offtakers under the power purchase agreements.

Project Description
The RMIPPPP, also referred to as South Africa's emergency procurement round, was launched in August 2020 to fill a short-term electricity supply gap, ease electricity constraints and reduce the use of diesel-based peaking generators.

The programme was designed to procure 2 000 MW of dispatchable generation from a range of technologies. Bids had to be able to supply capacity and ancillary services between 05:00 and 21:30, and could be submitted as portfolios combining different technologies to meet the system operator's requirements.

Eight preferred bidders were announced in March 2021, with three Scatec Kenhardt solar-and-battery projects added in June 2021 after value-for-money negotiations.

The preferred-bidder projects and their developers are:

• Kenhardt 1, Kenhardt 2 and Kenhardt 3, Northern Cape: 540 MW of solar PV and 225 MW/1 140 MWh of battery energy storage system (BESS) capacity – Scatec and H1 Holdings.
• ACWA Power Project DAO, Northern Cape: 150 MW contracted-capacity hybrid solar PV and BESS project – ACWA.
• Oya Energy Hybrid Facility, Western and Northern Cape: 128 MW contracted-capacity hybrid project –ENGIE, G7 Renewable Energies, Meadows Energy and Perpetua Investment Holdings.
• Umoyilanga Energy: 75 MW contracted-capacity two-site virtual power plant, comprising Avondale solar PV and BESS project in the Northern Cape, with 115 MW of solar PV and 30 MW/90 MWh of BESS capacity, and the Dassiesridge wind and BESS project in the Eastern Cape, with 63 MW of wind and 45 MW/115 MWh of BESS capacity. The project is being developed by EDF power solutions and Perpetua Holdings.
• Hydra project, near De Aar, in the Northern Cape: a 75 MW contracted-capacity hybrid project comprising a 216 MW solar PV plant and a 500 MWh BESS – TotalEnergies (35%), Hydra Storage Holding (35%) and Reatile Renewables (30%). The facility is expected to supply more than 400 GWh/y of electricity under a 20-year power purchase agreement with Eskom.
• Mulilo Total Coega in the Eastern Cape: 197.76 MW contracted-capacity project combining solar PV and gas engines – Total.
• Karpowership SA Coega was a 450 MW floating modular gas-to-power project proposed for Coega/Nelson Mandela Bay, in the Eastern Cape. Karpowership SA and Powergroup SA were the project developers.
• Karpowership SA Richards Bay was a 450 MW floating modular gas-to-power project proposed for Richards Bay, in KwaZulu-Natal. Karpowership SA and Powergroup SA were the project developers.
• Karpowership SA Saldanha was a 320 MW floating modular gas-to-power project proposed for Saldanha Bay, in the Western Cape. Karpowership SA and Powergroup SA were the project developers.

Potential Job Creation
Oya Energy Hybrid Facility and Umoyilanga Energy together account for about 3 967 job-years. ACWA Power Project DAO accounts for 864 job-years and Mulilo Total Hydra Storage Hydra accounts for 1 898 job-years.

Capital Expenditure
The combined investment value of the initial eight projects was previously estimated at about R45-billion. By December 2023, seven of the 11 appointed preferred bidders had signed agreements, representing R42.8-billion of investment and 578 MW of dispatchable capacity.

Scatec has described the Kenhardt portfolio as an investment of about $1-billion. Oya Energy and Umoyilanga Energy have a combined investment value of about R14.6-billion. ACWA Power Project DAO has been reported by developer-side sources as an $800-million project. 

Planned Start/End Date
The Scatec Kenhardt 1, 2 and 3 projects started supplying electricity to the grid in December 2023.
Umoyilanga reached commercial and financial close in November 2023. Dassiesridge entered provisional commercial operation on December 5, 2025, with full commercial operation dependent on Avondale and targeted as early as possible in 2026.

ACWA Power Project DAO reached legal close on December 14, 2023, and was expected to achieve commercial operation in the second quarter of 2026. Oya Energy reached financial close in February 2024. 

The Hydra project was officially inaugurated and brought into operation on July 16, 2026.

Mulilo Total Coega and the three Karpowership projects did not reach commercial close under the original timetable. Their grid budget quotes expired on December 31, 2023, and were not extended.

Latest Developments
The Hydra project entered operation in July 2026 and is supplying 75 MW of dispatchable renewable electricity to the national grid between 05:00 and 21:30 daily.

Key Contracts, Suppliers and Consultants
Scatec (developer, engineering, procurement and construction provider, operations and maintenance provider and asset manager – Kenhardt projects); Standard Bank (lead arranger – Kenhardt projects); ENGIE, G7 Renewable Energies, Meadows Energy and Perpetua Investment Holdings (Oya Energy); RMB (mandated lead arranger and bookrunner – Oya Energy); Power Africa and SinoHydro joint venture (construction – Oya Energy); EDF power solutions and Perpetua Holdings (Umoyilanga – Dassiesridge (Power Construction and Adenco for balance of plant); and Vestas (wind turbines); Nedbank, RMB and the Development Bank of Southern Africa (project funding – Umoyilanga); TotalEnergies, Hydra Storage Holding and Reatile Renewables(Hydra project).

Contact Details for Project Information
IPP Office, tel +27 87 351 3000 or email info@ipp-projects.com.