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Preferred Bidders for Renewable Energy Bid Window 5 Selected

November 2, 2021

Department of Mineral Resources and Energy

Preferred bidders for the Renewable Energy Independent Power Producer (IPP) Procurement Programme (REIPPPP) Bid Window 5 have been announced.

The IPP Bid Window 5 was released to market on 12 April 2021 and is the first bidding round to be launched under the Second Section 34 Determination.

According to the mineral resources and energy minister, Gwede Mantashe, Bid Window 5 sought to “procure a total of two thousand six hundred megawatts (2 600 MW) which includes one thousand six hundred megawatts (1 600 MW) from onshore wind and one thousand megawatts (1 000 MW) from Solar PV plants”.

102 bids were submitted with capacity totaling nine thousand, six hundred and forty-four megawatts (9 644 MW).

25 Preferred Bidder Projects, procuring a total of two thousand, five hundred and eighty-three megawatts (2 583 MW), have now been selected.

The Projects will inject R50 billion into the South African economy and create 13 900 job opportunities.

The minister highlighted that a 7 percent commitment on ownership by black women in the Projects has been achieved.

The mineral resources and energy department aims to secure financial close on the projects within the next six months.

The plan is to release Bid Window 6 including 1 600 MW of onshore wind and 1 000 MW of solar PV by the end of January 2022.

In a statement, the department pointed out that the appointed Preferred Bidders are expected to start generating electricity commencing from April 2024.

Meanwhile, in Government Gazette 45393, the department announced public hearings by the National Energy Regulator (NERSA) on the electricity energy price determination methodology.

According to the notice, NERSA’s Electricity Division is undertaking a process to review the electricity industry price determination approach.

“This review is triggered by the current Electricity Industry crisis and changes happening in the Electricity Industry, including but not limited to unstable prices, the unbundling of Eskom, the increase in registration threshold as well as the energy transition that can be observed around the world.”

The review aims to introduce innovative interventions to improve the price and system stability of the electricity industry as well as improve access thereto.

Hearings will take place in early November 2021.