In December last year, Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa announced the successful bidders for two key public procurement programmes of the IPP Office: Bid Window 7 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and Bid Window 2 of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP).
Bid Window 7 of South Africa’s REIPPPP will see the development of an additional 1 760 MW of solar PV capacity.
REIPPPP Bid window 7
Eight preferred bidders were announced for BW7 of the REIPPPP, to deliver 1 760 MW of new solar PV capacity in projects across the Free State (two), North West (two), Limpopo (three) and Mpumalanga (one). Although BW7 was intended to secure up to 5 000 MW of new renewable energy capacity, allowing for 1 800 MW of solar PV and 3 200 MW of onshore wind capacity, no wind energy projects were announced as preferred bidders.
Among the preferred bidders Infinity Power, which is headquartered in Egypt, and its local partner, Pele Green Energy, are set to deliver six projects, in Limpopo, Mpumalanga and North West, totalling 1 280 MW, with Scatec to deliver one project, 240 MW, and Mulilo also one project, 240 MW, both in the Free State.
Ramokgopa said additional compliant bidders among the total of 48 submissions received (40 for solar PV and eight for onshore wind) were still being considered as potential preferred bidders, subject to value for money negotiations and the possible reallocation of some capacity within this bid window from onshore wind to solar PV technology, as provided for in the request for proposals.
The total investment from the eight solar PV preferred bidders in this bid window reportedly amounts to just more than R30 billion, and overall, the projects present a commitment to creating close to 7 000 job opportunities for South Africans during construction and in ongoing operations.
BESIPPPP Bid window 2
Another eight preferred bidders were announced for BW2 of the BESIPPPP, which will deliver battery energy storage projects of some 77 MW each, totalling 615 MW / 2 460 MWh. The projects will provide additional capacity and ancillary services to Eskom at eight selected sites, helping to strengthen the country’s electricity grid and support the transition to a more sustainable energy system.
Among the preferred bidders, Mulilo led the way, allocated five projects which are set to deliver 384 MW / 1 536 MWh:
- Rooikoppies BESS at the Bighorn substation in the North West
- Mercury BESS at the Mercury substation and Hartebeesfontein BESS at the Hermes substation, both in the Free State
- Welverdiend BESS at the Carmel substation and Leeuwpoort BESS at the Midas substation, both in Gauteng.
AMEA Power, an investor, developer and operator of renewable energy projects, headquartered in Dubai and one of the fastest growing renewable energy companies in the Africa, Middle East, Asia region, was awarded two projects, to deliver 154 MW/ 616 MWh: Gainfar BESS at the Ngwedi substation and Boitlekong BESS at the Marang substation, both in the Free State.
And EDF was awarded one project, to deliver 77 MW / 308 MWh with the Oasis Ararat BESS project at the Ararat substation in the North West.
In announcing the preferred bidders, Ramokgopa also noted that while the country had been free of loadshedding for a large part of 2024, “we are not out of the woods yet”. He said the country should not be celebrating almost 300 days with no loadshedding, but that no loadshedding should be the norm. The minister said work would continue to ensure the end of loadshedding and, in the longer term, enable sufficient energy space for the South African economy to grow.
Part of this work includes accelerating the development of clean, renewable energy in the country to reduce the reliance on coal-fired power stations, and to enable South Africa to meet its global commitments in terms of its Nationally Determined Contribution to reducing emissions in order to mitigate the severe impacts of climate change.
For more information visit: https://www.ipp-projects.co.za/
