Sandton - The Energy Department says it will in the next few weeks announce the small power bidding round in the Renewable Energy Independent Power Producers (IPP) programme.
"We will introduce the small power, or less than 5 MW capacity, bidding round in the next few weeks..." Energy Minister Dipuo Peters told a New Age/ SABC breakfast briefing on Thursday.
This follows the department's recent announcement of bidders for Window 2 of the programme, where 19 bidders were selected.
South Africa wants to procure 3 625 MW of renewable energy through this process. According to the Integrated Resource Plan (IRP2010) - which is a 20-year projection on electricity supply and demand - about 42% of electricity generated in South Africa is required to come from renewable resources.
The programme involves a bidding process where it looks for proposals on new generation capacity.
Peters said work was continuing on the Upington solar park, where land issues are being ironed out. She reaffirmed commitment to build the park.
Additionally, South Africa was blessed with huge uranium reserves that could be used to create an abundance of energy.
On the issue of shale gas extraction, Peters said: "We can't allow a blessing to lie fallow. Let us look at our ability to extract it," she said in response to a question from the audience.
Last year, the Department of Mineral Resources imposed a moratorium on fracking - which is a method of gas extraction - in the Karoo, a move followed by the establishment of a task team to look into the matter. A report is still awaited on the matter.
Peters said it was important not to rush the process, adding that shale gas could co-exist with other sources, as it was used in countries like Australia and the US.
Meanwhile, the minister said there would be a reduction in the petrol price in June.
"The petrol price will definitely be going down," she said, adding that the price was also influenced by international forces.
A review of the petrol price that is being conducted by the department will look into pricing. Currently in Gauteng, a litre of 95 ULP costs R12.22.
