South African Department of Mineral Resources and Energy floats tender for 2.6 GW of solar and wind projects in South Africa

South Africa has opened the country’s fifth renewable energy bidding window to procure 2.6 GW of clean energy ventures. Out of the 2.6 GW capacity, 1.6 GW will be sourced from wind, and 1 GW will be sourced from solar projects under South Africa’s renewable energy independent power producer procurement program (REIPPPP), which was inaugurated in august 2020.

The South African Department of Mineral Resource and Energy issued the request for proposal (RfP). The closing date for bid submission is August 04, 2021.

South Africa plans to issue four more tenders within the next twelve months under the REIPPPP program, which includes 2.6 GW from renewable energy, 3 GW from gas, 1.5 GW from coal, and 513 MW from battery storage.

SG Mantashe, the South African Minister of Mineral Resources and Energy, announced the list of eight shortlisted bidders for the procurement of 2 GW of power to meet the country’s growing energy demands which includes ACWA Power Project DAO, Karpowership SA Coega, Karpowership SA Richards Bay, Karpowership SA Saldanha, Mulilo Total Coega, Mulilo Total Hydra Storage, Oya Energy Hybrid Facility, and Umoyilanga Energy.

He added that the evaluation process resulted in the selection of eight preferred bids totaling 1.85 GW and a further three eligible bids totaling 150 MW.

The solutions provided by these bidders include solar, wind, liquified natural gas, and battery storage. The prices for the proposed solutions range from ZAR 1,468 (~USD 100)/MWh to R1,885 (~USD 128)/MWh. The weighted average price is ZAR 1,575 (~USD 107)/MWh.

The preferred bidders are required to reach financial closure by the end of July 2021. It is expected that the power from these projects will be connected to the grid from August 2022.

South Africa has planned to install 11.8 GW of new capacity from renewables, natural gas, battery storage, and coal-fired projects. Out of the total capacity, 4.8 GW has been set aside for wind, 2 GW for solar, and 500 MW for energy storage.