South Africa’s Department of Mineral Resources and Energy (DMRE) has kicked off the 6th round of the Renewable Energy Independent Power Producer Procurement Program (REIPPPP). The South African government’s call for expression aims to procure 1 GW of utility-scale solar (PV) and 1.6 GW of wind power.
The DMRE has opened pre-qualifications for the development of newly installed renewable energy capacity. Interested independent power producers (IPPs) have until 22 August 2022 to submit their proposals. The request for proposals (RfP) was issued under Bid Window 6 of the country’s REIPPP programme and the registration process is now open for potential bidders to register.
For more information on the sixth REIPPPP tender, click here.
In a statement released by the DMRE, it’s been acknowledged that South Africa has been facing energy challenges. The qualification criteria have therefore been “developed to promote the participation of projects that are fully developed and can be constructed and connected to the national grid as soon as possible, but no later than 24 months after financial close”.
The procurement exercise is part of a plan to tender an estimated 12 GW of capacity and follows the recent publication of South Africa’s new Integrated Resource Plan (IRP). The IRP aims for up to 6 GW of new large-scale solar by 2030, as well as up to 6 GW of distributed-generation PV capacity.
This follows the 5th round of the REIPPPP scheme that was launched in March 2021, having successfully allocated 2.6 GW of renewable energy capacity across 25 projects ranging in size from 75 MW to 140 MW.
South Africa is focusing on accelerating its energy transition:
The South African government is determined to accelerate its energy transition in line with its international commitments. To achieve this, the country has agreed to reduce its coal fleet over the next few years with the support of developed countries, which pledged $8.5 billion in funding at the 2021 Glasgow Climate Change Conference (COP26).
Of the 58,095 MW of installed electricity capacity, 48,380 MW (or 80%) is generated from coal-fired power plants, according to Power Africa. These thermal power stations are owned by the state-owned company Eskom, which also provides electricity transmission and distribution in South Africa. In recent years, its grid power has been boosted by renewable energy produced under the REIPPP, designed to facilitate private sector investment.
At the same time, South Africa’s power utility, Eskom, plans to reduce its coal-fired capacity from 8,000 to 12,000 MW over the next 10 years. Thus, getting rid of some of its aging coal-fired power plants.
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Sources: https://www.afrik21.africa/en/south-africa-pretoria-launches-a-tender-for-2-6-gw-of-clean-energy/
