Bid Window 6 of the Renewable Energy Independent Power Producer Procurement Programme’s (REIPPPP) request for proposals, which was released in early July, has been amended by the Department of Mineral Resources and Energy (DMRE).
The South African government has announced that it has doubled the wind energy allocation for the REIPPPP Bid Window 6 (BW6) to 3,200MW because of the urgent need for increased capacity in the electricity system. The procurement allocations now stand at 3,200MW for wind energy and 1,000MW sought from solar energy suppliers. This makes the wind energy allocations the majority of the increased allocation of 4,200MW across all technologies.
According to a government statement, the increase is in response to the steps announced by President Cyril Ramaphosa to address South Africa’s energy challenges. The total amount of capacity that government now plans to add to the grid following BW6 is 5,200MW, which will be added over the next 24 months.
“Rather than delay this RFP for all requests to be approved, the government opted to issue the current RFP for 4,200MW, as opposed to delaying the entire Bid Window,” the statement read.
The South African Wind Energy Association (SAWEA) has welcomed this increase as well as the extended bid submission date, which is now set for 3 October 2022, as it opens the process to new bidders and will help ensure more participation by the wind sector.
“Furthermore, we urge the NERSA [National Energy Regulator of South Africa] concurrence, with the DMRE Minister, to determine the remainder of the IRP2019 allocation, be concluded with urgency, to ensure that the Presidents directive on new generation is met,” said Niveshen Govender, CEO of SAWEA.
Speaking on behalf of its members, SAWEA says it is certain that the wind sector will respond effectively to the call for this additional generation capacity, which will further enable it to play a key role in the country’s energy mix, thereby creating economic value and impact.
In line with the NDP (National Development Plan), the REIPPP Programme continues to deliver more than clean power generation, as it is designed to stimulate investment and deliver economic and socio-economic benefits for the country.
SAWEA has confirmed that the industry remains confident in its ability to build new renewable energy generation capacity while meeting economic development objectives and reiterates that it has no doubt that the sector will respond positively. The Association’s engagements with the DMRE, DTIC (Department of Trade and Industry Competition) and other key sector stakeholders have strategically mapped the way forward to deliver on the just energy transition mandate.
According to the statement, a further announcement, regarding the remaining 1,000MW of Solar PV, will be made following the conclusion of the NERSA [National Energy Regulator of SA] process regarding the concurrence of the new determination.
