The Department of Mineral Resources and Energy of South Africa has signed power purchase agreements (PPAs) for 13 solar photovoltaic (PV) and wind power projects under the fifth bidding round of the country’s Renewable Energy Independent Power Producers Procurement Program (REIPPPP). The projects are expected to add up to 975 MW of renewable energy to South Africa’s national grid over the next two years.
Having been concluded during a signing ceremony held in the municipality of Centurion in South Africa’s Gauteng Province on 8 December, the projects are expected to reach commercial operation in 2025 and have attracted an investment of approximately $1.94 billion.
“With the signing of these 13 agreements, the department has now concluded 19 out of the 25 announced projects under Bid Window 5, which will add an overall total of 1,759 MW renewable capacity to the national grid,” the Department of Mineral Resources and Energy indicated in a statement, adding, “This comprises 784 MW from onshore wind technologies and 975 MW from solar PV.”
Having achieved an overall 49.2% South African ownership, the projects are expected to create up to 7,700 job opportunities and provide for skills development and training opportunities, with a minimum local content commitment of 46% of the total projects earmarked for local suppliers, thus encouraging growth of the local economy.
Renewable energy consortium, Ikamva, which is led by independent power producer (IPP), Globeleq and renewable energy developer, Mainstream Renewable Power, signed six projects during the ceremony, with Norwegian IPP, Scatec, and French multinational utility company, Engie, having been awarded three each, while energy supermajor, TotalEnergies was awarded one.
“We are committed to adding further clean and sustainable electricity generation to help address South Africa’s significant energy needs, support their Just Energy Transition Partnership and deliver jobs and skills development,” stated Globeleq Chief Development Officer, Jonathan Hoffman.
Meanwhile, expected to add an additional 850 MW to the grid, the Department of Mineral Resources and Energy announced five preferred bidders under South Africa’s Bid Window 6, with an investment of approximately $714 million, with a sixth bidder – yet to be officially appointed – poised to bring the figure to up to 1,000 MW.
The sixth Bid Window of South Africa’s REIPPPP was released in April 2022, with 56 bid submissions having been received on 3 October.