Energy Capital & Power

DMRE to Address Power Supply Shortfalls with 2,000 MW PPA Finalization

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South Africa’s Minister of Mineral Resources and Energy, H.E. Gwede Mantashe, has announced that his department will be finalizing a new set of power purchase agreements (PPA) to meet the country’s current power shortfall. To be concluded in March and April 2022, the PPA’s will bring on an additional 2,000 MW of installed capacity.

Undertaken through the country’s Risk Mitigation Independent Power Producer Procurement Program (RMIPPPP) – a comprehensive framework to address supply constraints through independent power producers – the PPA finalization will directly address South Africa’s 4,000 MW supply shortage.

“Next month and in April, we will conclude the PPA’s for 2,000 MW RMIPPPP,” stated H.E. Minister Mantashe, adding that, “The challenge is that not all of the RMIPPPP preferred bidder projects may by in a position to conclude PPA’s due to outstanding processes on their side.”

Meanwhile, speaking during the post-State of the Nation Address debate on February 15, 2022, H.E. Minister Mantashe stated that other PPA’s will also be finalized during March and April. Totalling 2,600 MW, these PPA’s form part of the country’s Renewable Energy Independent Power Procurement program Bid Window 5 and will be critical for the country as demand for clean power increases.

“In addition, at the end of March, we will issue a request for proposals for 2,600 MW from renewable energy bid window 6. In April, there will be a request for proposals for 513 MW from battery storage,” H.E. Minister Mantashe continued. Thereafter, every six months, additional bid windows will be opened for proposals.

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Keletso Moilwe

Keletso Moilwe

Keletso Moilwe is a Content Intern at Energy Capital & Power. She holds an Honours Degree is Geography and Environmental studies and is currently pursuing her Masters Degree at the University of Cape Town.