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 include:

• 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
State-owned power utility Eskom has acknowledged and welcomed the DMRE’s extension of the commercial close timelines for the 25 preferred bidders announced under the REIPPPP BW5, with all projects expected to sign project agreements by no later than the end of September.

The Eskom Grid Access Unit has also reiterated its support for the REIPPPP and has also made some clarifications regarding the REIPPPP BW5, as well as the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) and the non-DMRE electricity generation projects.

These clarifications include that, as selected by customers and independent power producers (IPPs), these are all self-build projects.

Moreover, Eskom has said that, in the self-build project process, the IPPs are responsible for, among other aspects, paying the quotation fees without delay (when requesting the budget quote (BQ), and accepting all the cost-estimate letter (CEL) conditions; presenting designs to Eskom for review and implementing the recommendations as part of the BQ development process; the duration of meeting all the BQ conditions, when accepting the BQ; the environmental-impact assessment (EIA), procurement and construction work, depending on the specific technical scope of each project; and the commissioning timelines, until the eventual operation of the IPP projects.

IPPs and Eskom work on a collaborative basis on BQ development and execution; therefore, Eskom is not in control of some activities, the utility has emphasised.

Eskom has noted that the commercial close date is, therefore, specifically dependent on the IPPs’ paying quotation fees and accepting their CELs immediately after announcement of the preferred bidder; submitting designs on time; reviewing designs with Eskom in time, dependent on – and on agreed upon – self-build activities; and fulfilling other requirements to allow for BQ development and conclusion.

Eskom has also reiterated that it is committed to meeting the BQ dates, in support of IPPs’ requirements, including the signing and commercial close dates of the DMRE programme timelines.

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.