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, 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 to not only 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 with solar PV technology and BESSs, in the Northern Cape.

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 initial eight projects were expected to reach financial close by no later than the end of July 2021 and be connected to the grid from August 2022. However, the deadline for financial close has been shifted to September 30, owing to several processing delays.

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 Department of Forestry, Fisheries and the Environment (DFFE) has said it is appointing an "independent expert" to assist Minister Barbara Creecy in responding to an appeal by floating powership provider Karpowership SA.

Karpowership SA, which falls under Turkey's Karadeniz Energy Group, was named a preferred bidder in the RMIPPPP in March 2021 to fast-track the production of new power to reduce load-shedding.

The energy group produces electricity from gas-fired power stations on ships. Its local unit bid to moor five powerships and three support vessels, known as floating storage regasification units, at the ports of Saldanha Bay, Coega and Richards Bay.

In late June, it was refused environmental approval by the DFFE. In its ruling, the department said Karpowership SA had not undertaken a noise modelling study on the impact of running the ships on marine life. It also said that the powership provider's public consultation process had been lacking.

The energy group soon lodged an appeal against the decision. In August, one of its local directors, Mehmet Katmer, said it was "very confident" an appeal would be successful as it "meets all the requirements".

On November 23, the DFFE said that while it had finished sourcing the information it needed from all parties, it had decided to appoint an expert to help decide whether to grant or refuse the appeal: "The appeals administrator is . . . appointing an independent expert to assist the Minister with the appeals. As soon as the appointment process is finalised, the expert will have ten days to consider the appeals and make recommendations in respect thereof".

According to the tender document, the closing date for bids is 6 December.

While the RMIPPPP was devised as a speedy answer to SA's energy woes, it has been beset by repeated delays. The 11 preferred bidders have struggled to clear regulatory hurdles quickly, while a lawsuit launched by a losing bidder has further delayed proceedings. The suit is to be heard later this month in the North Gauteng High Court, in Pretoria.

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.