Mantashe announces 25 preferred bidders for new renewable energy projects in SA

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Mantashe pointed out that projects of this kind typically have an average of a minimum of about 36 months before they can produce power into the grid.
Mantashe pointed out that projects of this kind typically have an average of a minimum of about 36 months before they can produce power into the grid.
Freddy Mavunda/Gallo Images

Mineral Resources and Energy Minister Gwede Mantashe on Thursday 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. However, cautioned Mantashe, projects of this kind typically have an average minimum of about 36 months before they can contribute power to the grid.

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 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. In August, Fin24 reported that bids for 63 solar PV and 39 wind projects had been received.  

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 DMRE, 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. 

The 25 projects selected are:

  • Coleskop Wind Energy Facility
  • San Kraal Wind Energy Facility
  • Phezukomoya Wind Energy Facility
  • Brandvalley Wind Farm
  • Rietkloof Wind Farm
  • Wolf Wind Farm
  • Beaufort West Wind Facility
  • Trakas Wind Facility
  • Sutherland Wind Facility
  • Rietrug Wind Facility
  • Waaihoek Wind Facility
  • Dwarsrug Wind Facility
  • Grootfontein PV 1
  • Grootfontein PV 2
  • Grootfontein PV 3
  • Grootspruit Solar PV Project
  • Graspan Solar PV Project
  • Sannaspos Solar PV Project
  • Du Plessis Dam Solar PV 1
  • Kentani Solar Facility
  • Klipfontein Solar Facility
  • Klipfontein 2 Solar Facility
  • Leliehoek Solar Facility
  • Braklaagte Solar Facility
  • Sonoblomo Solar Facility
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