South Africa has opened the country’s fifth renewable energy bidding window to procure 2.6 GW of clean energy projects. Out of the 2.6 GW capacity, 1.6 GW will be sourced from wind, and 1 GW will be sourced from solar projects under South Africa’s renewable energy independent power producer procurement program (REIPPPP).
The program was launched in August 2020. The request for proposal (RfP) was issued by the South African Department of Mineral Resources and Energy.
The closing date for bid submission is August 04, 2021.
Under the REIPPPP program, the country plans to issue four more tenders within the next twelve months. These will include 2.6 GW from renewable energy, 3 GW from gas, 1.5 GW from coal, and 513 MW from battery storage.
The Minister of Mineral Resources and Energy, SG Mantashe, also announced the list of eight shortlisted bidders for the procurement of 2 GW of power to meet the country’s growing energy demands.
The list of shortlisted bidders includes ACWA Power Project DAO, Karpowership SA Coega, Karpowership SA Richards Bay, Karpowership SA Saldanha, Mulilo Total Coega, Mulilo Total Hydra Storage, Oya Energy Hybrid Facility, and Umoyilanga Energy.
He added that the evaluation process resulted in the selection of eight preferred bids totaling 1.85 GW and a further three eligible bids totaling 150 MW.
The solutions provided by these bidders include solar, wind, liquified natural gas, and battery storage. The prices for the proposed solutions range from R1,468 (~$100)/MWh to R1,885 (~$128)/MWh. The weighted average price is R1,575 (~$107)/MWh.
These eight projects will bring in R45 billion (~$3.05 billion) to the South African economy from private sector investment, with an average local content of 50% during the construction period. About 3,800 job opportunities will be created during the 18 months construction period and a further 13,500 during the 20-year power purchase agreement (PPA) term.
The preferred bidders are required to reach financial closure by the end of July 2021. It is expected that the power from these projects will be connected to the grid from August 2022.
“The energy generation landscape of the country is evolving, and concerted efforts are underway to ensure that the IPP procurement programs move ahead to deliver secure energy supply from a diverse range of energy sources,” added the minister.
South Africa has planned to install 11.8 GW of new capacity from renewables, natural gas, battery storage, and coal-fired projects. Out of the total capacity, 4.8 GW has been set aside for wind, 2 GW for solar, and 500 MW for energy storage.
In October last year, South Africa-based Marula Platinum Mine issued a request for information for setting up a 10 MW solar project to power its operations. Marula sought information on designing, finance, supply, construct, commission, operate, and maintain a 10 MW solar project at its platinum mine in Limpopo, South Africa.
Earlier, ArcelorMittal South Africa had issued a request for information to recruit independent power producers to set up solar power projects at six South African locations. The company planned to enter into PPAs with power producers to build, own, and operate solar projects at Vanderbijlpark, Newcastle, Vereeniging, Pretoria, Thabazimbi, and Saldanha.
Rakesh Ranjan is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). More articles from Rakesh Ranjan.