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South African energy news

South Africa to add 6.3 GW to future REIPPPP tenders

South Africa intends to procure an additional 6,300 MW of renewable energy capacity in future tenders following the "extremely successful" fourth bid window, which saw contract awards for 1,121 MW.
The government announced the results of the latest Renewable Energy Independent Power Producers Procurement (REIPPPP) in a statement on Thursday and said it wants to accelerate and expand the programme due to the country's power supply challenges.

South Africa now plans to allocate additional capacity to the fourth round. It also aims to issue, by no later than early June 2015, a request for proposals (RfP) for an expedited procurement process of 1,800 MW from all renewable energy technologies. That RfP will be open to all unsuccessful bidders from prior rounds.

Meanwhile, the department of energy will give details to power regulator NERSA for its plan for a further 6,300 MW under the REIPPP scheme. With this extension, the government wants to maintain the momentum of the programme, it said.

In the fourth REIPPP round, South Africa committed to award power purchase agreements (PPAs) to 13 projects, including 676 MW of wind, 415 MW of solar, 25 MW of biomass and 5 MW of hydro. These projects need to achieve financial close in the final quarter of the year. Commissioning is expected to start in November 2016.

Additional information: Full announcement by the Minister
News date: 16/04/2015

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