Electricity and Energy Minister Dr Kgosientsho Ramokgopa has announced the appointment of additional Preferred Bidders to deliver 890 megawatts (MW) of solar photovoltaic (PV) capacity, marking a significant expansion of South Africa’s renewable energy programme and a R16 billion investment injection into the economy.
With the latest announcement, total capacity procured under Bid Window 7 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) now stands at 3 940MW, to be delivered through 18 solar PV independent power producer (IPP) projects.
Addressing media in Pretoria on Monday, Ramokgopa said the additional capacity forms part of government’s drive to stabilise electricity supply, while supporting economic growth and job creation.
“South African equity participation of 49% across all the Preferred Bidders and average Black Economic Empowerment participation of 40% have been committed by these projects,” Ramokgopa said, adding that these commitments will be formalised through Implementation Agreements between the department and the project companies.
The Minister said the additional projects in Bid Window 7 emerged from strong market interest, which attracted 48 bidders offering a combined 10.2 gigawatts — more than double the capacity originally requested.
“They were giving us twice the number of megawatts that we had called for,” Ramokgopa said, noting that government initially prepared preferred bidders for about 1 760MW of solar PV, close to the 1 800MW target.
He explained that when Bid Window 7 did not yield sufficient wind energy bids, government successfully converted that capacity allocation to solar PV, enabling the appointment of additional bidders.
“We were able to get six additional bidders that were going to add another 1 290 megawatts. After further engagements on pricing and compensation, we are now able to ensure that four of these projects go over the line, giving us an additional 890 megawatts,” he said.
Ramokgopa said the new projects are expected to reach the grid within the next 24 months, reinforcing government’s commitment to expanding generation capacity as economic activity picks up.
“The more the economy grows, the more electricity consumption we need to support that growth. We have to give the country assurance that electricity will be there,” he said.
The Minister confirmed that three of the four newly announced projects were awarded to Red Rocket, and that the solar PV facilities will be located in the Free State and Northern Cape — provinces well suited to renewable energy development.
Ramokgopa reiterated that South Africa remains an ideal destination for renewable energy investment, with energy seen as a key enabler of economic recovery.
“We want the South African economy to grow. We want investors to come into this space, we want to get people into employment, and we are going to use energy to get the economy going,” he said.
The Minister said the R16 billion investment linked to the newly announced projects would flow directly into the South African economy, supporting industrial development, employment and long-term energy security. - SAnews.gov.za
