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DMRE Shines Light on Bid Window 5

May 28, 2021

Department of Mineral Resources and Energy

Bids for the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) Bid Window 5 must be submitted by 16 August 2021.

In a statement following the REIPPPP BID WINDOW 5 Bidders’ Conference, the mineral resources and energy department pointed out that preferred bidders are expected to be announced during October/November 2021.

The department added that commercial and financial close is anticipated by March 2022.

The Conference, hosted on a virtual platform, was attended by more than 800 delegates, including registered and other interested bidders, project developers, financiers and energy sector stakeholders.

According to the department, the 5th REIPPPP Bid Window is the first procurement bid window to be launched under the Ministerial Determination promulgated on 25 September 2020.

The Determination called for the procurement of 11 318 MW from a range of energy technologies, including Renewables, Gas, Storage and Coal, in line with the Integrated Resource Plan (IRP 2019).

The 5th Bid Window will procure a total of 2 600MW from onshore wind (1 600MW) and Solar PV (1 000MW) plants.

IPP projects up to the maximum size of 75MW for Solar PV and 140MW for Wind projects must be connected to the grid by no later than April 2024.

The department emphasized that the 90/10 evaluation scoring system will be applied in Round 5, with 90% allocated to price and 10% to B-BBEE Status Contribution level in line with the Preferential Procurement Policy Framework Act Exemption granted to Bid Window 5.

Meanwhile, speaking at the 131 Annual General Meeting of the Minerals Council South Africa yesterday, the mineral resources and energy minister, Gwede Mantashe, called for the revival of the mining sector so that it can contribute more to South Africa’s GDP.

“We believe the sector can contribute 12% or more to the GDP in the near future”, he said.

The minister emphasized that such growth can only be achieved “if we continue to work together as social partners in the industry”.

Required interventions include a robust exploration programme, improvements in licensing regime, implementation of regulatory policies such as MPRDA and Mining Charter, investment into research and development, investment into new mineral processing technologies and investments into artisanal and small-scale mining.

The minister indicated that a new mining licensing system designed to provide reliable information on precise locations of exploration and mining rights is under development.

He also invited the Minerals Council SA to partner with the department on the artisanal and small-scale mining policy as it “would ensure optimal exploitation of our mineral resources where resources that are too small for large mining cooperations can be economically exploited by the artisanal miners”.