Connect with us
The cheapest solar PV bid came at R0,37.5 c/kWh and the cheapest wind bid came at R0,34.4 c/kWh.

South Africa

South Africa announces preferred bidders for 5th renewable energy tender

The renewable energy projects are expected to attract around R50 billion (US$3,3 billion) in investment and create 13 900 new job opportunities.

South Africa’s minister of Mineral Resources and Energy, Gwede Mantashe, on Thursday night announced the preferred bidders for the 5th bid window of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The announcement ended a seven-year hiatus of new renewable energy capacity procurement by Africa’s most industrialised nation. 

The list of preferred bidders included 975 MW solar PV projects, and 1 608 MW of onshore wind energy projects, adding the total procured energy capacity to 2 583 MW. The renewable energy projects are expected to attract around R50 billion (US$3,3 billion) in investment. 

Through the development of the projects, an estimated 13 900 new job opportunities are set to be created. The preferred bidders have also committed about R2.7 billion towards socio economic development investment during the 20-year lifetime of the projects. 

Norwegian renewable energy developer, Scatec, has three projects that got awarded preferred bidder status. Scatec CEO Raymond Carlsen celebrated the achievement saying; “This is another great milestone for Scatec in South Africa and for renewable energy in the country. We are pleased with the South African government’s commitment to the REIPPP programme and their announcement within the set timeframe.”

Mainstream Renewable Power was the biggest winner of the 5th bid window with twelve of its projects with a total capacity of 1.27 GW getting a nod. “We are delighted to be chosen to contribute further to the decarbonisation of South Africa. It is a demonstration of faith in Mainstream’s track record of efficient and reliable delivery, not only here in South Africa but also internationally, where we are currently building ten wind and solar PV projects simultaneously, totalling 1.35 GW in Chile,” said Hein Reyneke, Mainstream’s General Manager for Africa.

French developer ENGIE also got three of its projects approved. EDF Renewables and Red Rocket were also granted approval for three projects each.

Close to 50% of shareholding in projects is South African, and 34,7% of the shareholding is by black South Africans. The preferred bidders also committed to have 25% of their suppliers to be made up of black owned companies.

Record low tariff price

The successive rounds of South Africa’s renewable energy programme indicated a falling trend in renewable energy tariff prices. The weighted average price of the preferred bidders is 47.3c/kWh, the cheapest since the inception of South Africa’s renewable energy procurement program in 2011.

The cheapest solar PV bid came at R0,37.5 c/kWh and the cheapest wind bid came at R0,34.4 c/kWh.

The solar PV projects awarded have a weighted average price of 49.5c/kWh, and the wind energy projects have a weighted average price of 42.9c/kWh.

List of Preferred Bidders for REIPPPP 5

Coleskop WEF

  • Fully Indexed Price (ZAR/MWh): R601.17 million
  • Contracted Capacity (MW): 140
  • Province: Eastern Cape
  • Local Municipality: Inxuba Yethemba

Wolf Wind Farm

  • Fully Indexed Price (ZAR/MWh): R617.70 million
  • Contracted capacity: 84
  • Province: Eastern Cape
  • Local municipality: Dr Beyers Naude

Sannaspos Solar PV Project

  • Fully Indexed Price (ZAR/MWh): R479 million
  • Contracted capacity: 75
  • Province: Free State
  • Local municipality: Mangaung

Grootspruit Solar PV Project

  • Fully Indexed Price (ZAR/MWh): R476.50 million
  • Contracted capacity: 75
  • Province: Free State
  • Local municipality: Matjhabeng

Kentani Solar Facility

  • Fully Indexed Price (ZAR/MWh): R374.79 million
  • Contracted capacity: 75
  • Province: Free State
  • Local municipality: Tokologo

Klipfontein Solar Facility

  • Fully Indexed Price (ZAR/MWh): R374.79 million
  • Contracted capacity: 75
  • Province: Free State
  • Local municipality: Tokologo

Klipfontein 2 Solar Facility

  • Fully Indexed Price (ZAR/MWh): R374.79 million
  • Contracted capacity: 75
  • Province: Free State
  • Local municipality: Tokologo

Leliehoek Solar Facility

  • Fully Indexed Price (ZAR/MWh): R374.79 million
  • Contracted capacity: 75
  • Province: Free State
  • Local municipality: Tokologo

Braklaagte Solar Facility

  • Fully Indexed Price (ZAR/MWh): R374.79 million
  • Contracted capacity: 75
  • Province: Free State
  • Local municipality: Tokologo

Sonoblomo Solar Facility

  • Fully Indexed Price (ZAR/MWh): R374.79 million
  • Contracted capacity: 75
  • Province: Free State
  • Local municipality: Tokologo

Waaihoek Wind Facility

  • Fully Indexed Price (ZAR/MWh): R529.78 million
  • Contracted capacity: 140
  • Province: KwaZulu-Natal
  • Local municipality: eMadlangeni

Du Plessis Dam Solar PV 1

  • Fully Indexed Price (ZAR/MWh): R475.45 million
  • Contracted capacity: 75
  • Province: Northern Cape
  • Local municipality: Emthanjeni

Dwarsrug Wind Facility

  • Fully Indexed Price (ZAR/MWh): R344.25 million
  • Contracted capacity: 124
  • Province: Northern Cape
  • Local municipality: Hantam

Sutherland Wind Facility

  • Fully Indexed Price (ZAR/MWh): R428.27 million
  • Contracted capacity: 140
  • Province: Northern Cape
  • Local municipality: Karoo Hoogland 

Rietrug Wind Facility

  • Fully Indexed Price (ZAR/MWh): R428.27 million
  • Contracted capacity: 140
  • Province: Northern Cape
  • Local municipality: Karoo Hoogland

Graspan Solar PV Project

  • Fully Indexed Price (ZAR/MWh): R470 million
  • Contracted capacity: 75
  • Province: Northern Cape
  • Local Municipality: Siyancuma

San Kraal WEF

  • Fully Indexed Price (ZAR/MWh): R564.45 million
  • Contracted capacity: 140
  • Province: Northern Cape
  • Local municipality: Unsobomvu

Phezukomoya WEF

  • Fully Indexed Price (ZAR/MWh): R564.45 million
  • Contracted capacity: 140
  • Province: Northern Cape
  • Local municipality: Unsobomvu

Brandvalley Wind Farm

  • Fully Indexed Price (ZAR/MWh): R496.90 million
  • Contracted capacity: 140
  • Province: Western Cape
  • Local municipality: Laingsburg

Rietkloof Wind Farm

  • Fully Indexed Price (ZAR/MWh): R502.70 million
  • Contracted capacity: 140
  • Province: Western Cape
  • Local municipality: Laingsburg

Beaufort West Wind Facility

  • Fully Indexed Price (ZAR/MWh): R427.41 million
  • Contracted capacity: 140
  • Province: Western Cape
  • Local municipality: Prince Albert

Trakas Wind Facility

  • Fully Indexed Price (ZAR/MWh): R427.41 million
  • Contracted capacity: 140
  • Province: Western Cape
  • Local municipality: Prince Albert

Grootfontein PV 1

  • Fully Indexed Price (ZAR/MWh): R484.60 million
  • Contracted capacity: 75
  • Province: Western Cape
  • Local municipality: Witzenberg

Grootfontein PV 2

  • Fully Indexed Price (ZAR/MWh): R484.60 million
  • Contracted capacity: 75
  • Province: Western Cape
  • Local municipality: Witzenberg

Grootfontein PV 3

  • Fully Indexed Price (ZAR/MWh): R484.60 million
  • Contracted capacity: 75
  • Province: Western Cape
  • Local municipality: Witzenberg

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

More in South Africa

Advertisement

Facebook

To Top