Page 9 - AfrElec Week 12 2021

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South Africa launches

Window 5 of IPP bidding

SOUTH AFRICA SOUTH Africa’s Department of Mineral from battery storage in addition to the 2,600
Resources and Energy (DMRE) has announced MW of renewable energy.
the opening of Bidding Window 5 of the coun- The fifth round is expected to increase the
try’s Renewable Energy Independent Power Pro- country’s renewable energy capacity dramat-
ducer Procurement Program (REIPPPP). ically and is seen as a top priority considering
The long-awaited fifth round seeks to procure South Africa’s mounting electricity challenges.
1 GW of solar photovoltaic and 1.6 GW of wind With the first power from these projects expected
capacity, and is expected to contribute signifi- to be connected to the grid from August 2022, as
cantly to the country’s growing energy needs. well as the anticipated injection of approximately
The announcement was made by DMRE ZAR45bn ($2.5bn) into the local economy,
Minister His Excellency Gwede Mantashe on South Africa is aggressively working towards
Thursday, when he stated that given the energy energy security and stability.
challenges the country is facing, the DMRE’s The bid round comes as the government is
objective is to get these projects connected to the proposing radical reforms at Eskom, and aims
grid as soon as possible. to bring in more private power providers to
“I am pleased to announce the first bidding increase competition.
round in response to the Section 34 Determina- This will involve breaking up the utility and
tion,” stated Mantashe on Twitter. “The request establishing an independent transmission sys-
for proposal [RfP] for the procurement of 2,600 tem and market operator.
MW under the REIPPPP Bid Window 5 will be Also, Eskom is now welcoming the entry of
released to the market at midnight [Thursday].” new IPP renewables providers through the bid
Additionally, the minister stated that the round, and has said that it will now sign power
department intends to release four more RfPs purchase agreements (PPAs) with bid winners.
within the next 12 months, including 3,000 MW In previous rounds, IPPs had complained that
from gas, 1,500 MW from coal and 513 MW Eskom had been reluctant to sign PPAs.™

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