DoE confirms 1 800 MW renewable energy plan

South Africa’s Department of Energy (DoE) expects to begin formally moving ahead with plans for a so-called ‘expedited’ renewable-energy procurement process by the end of June.

The intention is to offer projects that narrowly failed selection as preferred bidders during the first four bid windows under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) another opportunity to make the cut.

Acting director-general Dr Wolsey Barnard said it is likely that certain project developers will be approached by the end of the month to resubmit their bids, possibly with some pricing, or economic development tweaks.

Government is aiming to procure a further 1 800 MW under the expedited round, with the intention of announcing the preferred bidders before the end of the year.
Initially, only 13 projects were named in April, but Barnard said government decided to extend the allocation, owing to the competitive nature of the 77 bids received during the round.

In total 92 renewables projects, with a combined nameplate capacity of 5 243 MW, have been procured since the announcement of the first REIPPPP preferred bidders in late 2012 and the DoE indicates that the programme has resulted in investment commitments so far of R193-billion.

Barnard says 38 projects are already delivering electricity into the grid, with by far the majority of the projects having been delivered either on time or ahead of time and within budget.
Barnard notes that between bid windows four and five (the latter to be launched under a “streamlined” tender probably early next year) South Africa will have procured 3 000 MW more than initially allocated.

Barnard says the intention is to accelerate the cogeneration independent power producer (IPP) programme, which is seen as critical to helping South Africa address some of its near-term supply deficits.