New bidding round opens for renewable energy projects

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Bid Window 6 of the Renewable Energy Independent Power Producer Procurement Programme is officially open.
Bid Window 6 of the Renewable Energy Independent Power Producer Procurement Programme is officially open.
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  • Bid Window 6 of the Renewable Energy Independent Power Producer Procurement Programme has been launched.
  • It is expected to procure as much as 2 600 MW from wind and solar PV energy projects.
  • The deadline for bid submissions is 11 August.

Government plans to procure 2 600 MW of renewable energy in the latest bidding round launched on Wednesday.

The tender process for Bid Window 6 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) kicks off nearly six months after the preferred bidders of round five were announced. Bid window 5 is scheduled to reach financial close at the end of the month. 

Mineral Resources and Energy Minister Gwede Mantashe previously said Bid Window 6 is expected to procure as much as 1 600 MW of power from wind, and the remaining 1 000 MW is to be sourced from solar PV - in line with the Integrated Resources Plan - which sets out the country's energy mix.

According to the notice published on the IPP Office's website, bid submissions will be accepted until 11 August 2022 at 17:00.

Bids must be submitted by 11 August.
Bids must be submitted by 11 August.

The new bid window will contribute to bolstering power capacity needed to support the country's economic recovery, said South African Wind Energy Association (SAWEA) CEO, Niveshen Govender. "…This also adds impetus to the sector's push for industrialisation, which relies on rolling procurement for the industry to attract the necessary market investment and reduce risk," Govender added.

SAWEA welcomed the announcement, saying it signals the "rebirth" of the wind energy industry, which had been on "hiatus" for the past seven years, according to a statement.

The latest policy shifts indicates government's plans to procure a new generation on an ongoing basis. Consistent procurement and supporting regulations can help boost local manufacturing capacity, SAWEA said.

"Furthermore, renewable technologies present potential for the creation of new industries, job creation and localisation across the value chain," Govender added.

READ | Coal use must fall by 60% to stop world from overheating - and SA must do its bit

Challenges such as energy access, energy security and climate change can be addressed with renewable energy, Govender said.

The latest climate change mitigation report by the Intergovernmental Panel on Climate Change highlights the need to phase out fossil fuels, in order to limit global warming. It also indicates that the cost of renewable energy like wind and solar has declined significantly in the past decade, while their uptake has increased.

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