Doubling Capacity to 5,200 MW
Initially, Bid Window Six sought to bring online 2,600 MW of renewable energy. However, with load shedding becoming a significant challenge for the economy, H.E. President Ramaphosa announced that new generation capacity will be doubled for Bid Window Six to 5,200 MW.
This way, the number of investors and projects are set to increase two-fold, bringing online critical capacity while driving the country’s transition to a clean power generation future.
Bid Submission Deadline Extended
Following the Presidential address and in light of new capacity being introduced, South Africa’s Minister of Mineral Resources and Energy, H.E. Gwede Mantashe, announced that the bid submission deadline for Bid Window Six will be extended. Initially set for August 11, 2022, the deadline has been delayed allowing procedural fairness for new and current bidders. The revised date has officially been set for September 22, 2022, according to a notice issued on the Independent Power Producer website.
Eliminating Red Tape
In an effort to reduce the amount of time it takes for a project to be approved, constructed and brought online, H.E. President Ramaphosa also announced plans to reduce paperwork and ensure efficient permitting procedures around new generation capacity. While special legislation is currently being tabled on an expedited basis in parliament, aimed at addressing legal and regulatory obstacles for a limited period, in the meantime, the government will waive and/or streamlining certain regulatory requirements where possible. According to the President, “this includes reducing the regulatory requirements for solar projects in areas of low and medium environmental sensitivity.”
Honorary Mention: Bid Window Five Support
In addition to introducing amendments to Bid Window Six, H.E. President Ramaphosa announced that the government will prioritize the procurement of new capacity by offering support for projects under Bid Window Five, with the Minister of Trade, Industry and Competition, H.E. Ebrahim Patel, ensuring localization flexibility is introduced to address challenges faced by bidders, specifically around local content requirements. As such, the government is committed to bringing projects under the window online as per schedule.