The National Energy Regulator of South Africa (NERSA) at its June 30th meeting approved generation licenses for solar projects developed by Engie and Red Rocket. The projects form part of Bid Window 7.3 of the country’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
The recently approved solar energy projects will have a combined installed generation capacity of 1 049 MWdc of and are contracted to supply 890 MW of renewable electricity.
Among the approved projects, three of them belong to Red Rocket SA and including the 278 MWdc Sculptor Energy project in Mpumalanga, the 277 MWdc Springhaas Solar Facility 1 in the Free State (each having a contracted capacity of 240 MW), and the 206 MWdc Springhaas Solar Facility 6, also in the Free State with a contracted capacity of 170 MW.
Additionally, ENGIE’s 288 MWdc Corona Energy project in the Free State with a contracted capacity of 240 MW was also among the approved projects.
According to NERSA, it received the licence applications on January 23 and invited public comments before scheduling a virtual public hearing for May 7. The regulator said the hearing was cancelled after no objections were received and no members of the public registered to make presentations.
NERSA highlighted that the applications were assessed against its technical, financial, economic, regulatory and legal requirements and the projects were found to be compliant.
“The approval of these generation licences for the four REIPPPP projects will contribute to enhancing South Africa’s electricity generation capacity. The decision will also support broader national development objectives, including job creation and social upliftment, local industry development and increased opportunities for economic ownership” said NERSA in a statement.
The NERSA approvals come as South Africa’s electricity system has shown signs of improvement over the past year, with Eskom recording its longest periods without load shedding in several years and significantly reducing the use of expensive diesel-fired open-cycle gas turbines. Improved maintenance performance, the return of generating units to service and additional renewable energy capacity have helped stabilise the grid, although Eskom has cautioned that the system remains constrained and vulnerable to unexpected outages.
The approved REIPPPP projects are expected to play an important role in strengthening supply security. Once operational, the 890 MW of contracted solar capacity will add substantial new generation in the Free State and Mpumalanga, helping to meet daytime demand, reduce pressure on Eskom’s coal fleet and lower carbon emissions.
