Yesterday Mineral Resources and Energy Minister Gwede Mantashe named 25 preferred bidders selected in the fifth round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
The aim is to provide just under 2 600MW of additional power to South Africa’s ailing grid. Mantashe, however, cautioned that projects of this kind typically have an average minimum of about 36 months before they can contribute power to the grid.
Fin24 reports that the 25 preferred bidders‘ projects are expected to inject private sector investment of around R50 billion into the SA economy and create some 13 900 job opportunities.
The bidders have further committed a total of R2.7 billion towards socioeconomic development over the 20-year lifetime of the projects.
Just under 50% of the entities are South African, with a 34.7% shareholding by black people in the IPPs. The preferred bidders had committed to 25% black participation in companies that will be building the various projects, Mantashe said.
A Request for Proposal was issued in April this year, and government committed to announce the preferred bidders before the end of October. The group of preferred bidders was selected from around 100 that made submissions.
Bid Window 5 aimed to procure a total of 2 600 MW, which includes 1 600 MW from onshore wind and 1 000 MW from solar PV plants.
According to the department the appointed bidders will be expected to finalise regulatory approvals – including generation licences from NERSA – and reach the commercial close stage in around four months’ time.