Mantashe announces 25 preferred bidders for renewable energy projects in SA.

By Lehlohonolo Lehana.

Mineral Resources and Energy Minister Gwede Mantashe on Thursday named 25 preferred bidders selected in the fifth round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

The 25 companies were named as successful bidders for the Department of Mineral Resources and Energy’s (DMRE) fifth bid window of its Renewable Energy Independent Power Producers Procurement (REIPPP) Programme.  

To date, the government has procured and signed agreements with 93 Independent Power Producer projects (IPPs) said Mantashe during a media briefing on Thursday.

The aim is to provide just under 2 600MW of additional power to South Africa’s ailing grid. However, cautioned Mantashe, projects of this kind typically have an average minimum of about 36 months before they can contribute power to the grid.

Bid window 5 aims to procure 2,600 MW, which includes 1,600 MW from onshore wind and 1,000 MW from Solar PV plants.

Out of the 102 bids received, the government selected 25 projects which will procure 2,583 MW.

“A noticeable development is that we have Preferred Bidder projects in provinces not in previous renewable energy bid windows. Seven of the selected Preferred Bidders are located in the Free State Province, and one in KwaZulu-Natal,said Mantashe.

According to the DMRE, the appointed bidders will be expected to finalise regulatory approvals – including generation licences from NERSA – and reach the commercial close stage in around four months’ time. 

The 25 projects selected are:

  • Coleskop Wind Energy Facility
  • San Kraal Wind Energy Facility
  • Phezukomoya Wind Energy Facility
  • Brandvalley Wind Farm
  • Rietkloof Wind Farm
  • Wolf Wind Farm
  • Beaufort West Wind Facility
  • Trakas Wind Facility
  • Sutherland Wind Facility
  • Rietrug Wind Facility
  • Waaihoek Wind Facility
  • Dwarsrug Wind Facility
  • Grootfontein PV 1
  • Grootfontein PV 2
  • Grootfontein PV 3
  • Grootspruit Solar PV Project
  • Graspan Solar PV Project
  • Sannaspos Solar PV Project
  • Du Plessis Dam Solar PV 1
  • Kentani Solar Facility
  • Klipfontein Solar Facility
  • Klipfontein 2 Solar Facility
  • Leliehoek Solar Facility
  • Braklaagte Solar Facility
  • Sonoblomo Solar Facility

The 25 preferred bidder projects will inject a total private sector investment amount of about R50 billion to the South African economy. Preferred bidder projects will further create a total of 13,900 job opportunities, the minister added.

The bidders have further committed a total of R2.7 billion towards socioeconomic development over the 20-year lifetime of the projects. 

On the empowerment front, Mantashe explained that economic empowerment targets for Black people – in particular Black women had been set and achieved.

In addition, bidders also committed to procuring components from local manufacturers during project builds.

“The bid window five set out a number of key economic development targets. The DMRE not only requires participation by Black South Africans at project level but also requires participation across the entire renewable energy value chain.

“We must begin to see real owners who are South African and who are Black and that process takes its own time and we are very patient with it,” he said.

“These projects will continue to make a big difference – not only in the lives of those communities in the vicinity of the proposed power plants who will own 2.5% of the preferred bidder projects – the preferred bidders have committed a total of R2.7 billion towards socio-economic development, enterprise and skills development initiatives over the 20 year lifetime of the projects,” he said.

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