South Africa’s Minister of Energy, Tina Joemat-Pettersson, has announced the names of thirteen additional preferred bidders for the renewable energy independent power producer procurement programme (REIPPPP) Bid Window 4 that will supply an additional 1084 MW of electricity to support the South African national grid. To date, ninety-two renewable-energy projects have now been approved by the Department of Energy.
Public private partnerships in renewable energy have seen the contribution of an extra 6327MW of capacity to the national electricity grid since 2011. This increases the investment by the private sector in renewable energy to R193 billion. Across all Bid Windows to date a total contribution of R19.1 billion has been committed to socio-economic development (to be spent over the 20-year life span of the projects), as well as R6 billion for enterprise development initiatives.
This contributes significantly to economic growth and job creation, as well as to energy security and the increasing generation of “clean” electricity.
“The co-ordinated approach between government and the private sector to establish renewable energy development projects is making a positive impact on the socio-economic growth of South Africa. This is a clear message that we will overcome challenges by standing together,” said Ompi Aphane, deputy director-general for policy, planning and clean energy in the Department of Energy.
The additional preferred bidders include various onshore wind and solar PV facilities: The Soetwater Wind Farm (139 MW); Kangnas (137 MW); Perdekraal East (108 MW); Excelsior Wind Energy Facility (32 MW); Wesley-Ciskei (33 MW); Copperton Windfarm (102 MW); and Garob Wind Farm (136 MW). Others are Solar Capital Orange (75 MW); De Wildt (50 MW); Bokamoso (68 MW); Zeerust (75 MW); Greefspan PV Power Plant No. 2 Solar Park (55 MW); and Waterloo Solar Park (75 MW).
“There was also an overwhelming interest from local and foreign investors who offered excellent prices, which demonstrates confidence in public-private partnerships (PPPs) in the South African energy sector,” said Aphane.
“Improved electricity supply is a critical element of the nine strategic priorities identified by the South African cabinet in partnership with the private sector and all stakeholders. This coordinated approach to the energy challenge is aimed at meeting socio-economic development objectives and growing the economy”.
Government has demonstrated its commitment by investing substantially in renewable energy solutions. The use of independent power producers also encourages job creation and supports enterprise development, while green electricity becomes more affordable.
Aphane says that the Department of Energy is working tirelessly to find affordable solutions to the shortage of electricity. “With this programme South Africa is moving towards providing sustainable energy solutions and we believe it will position the country as a global player for alternative solutions that will ultimately unlock Africa’s potential.”
Accordingly, the flagship independent power producers procurement programme (IPPPP) is not only about renewable energy but rather a combination of energy supply and demand options to increase participation by (IPPs). IPPS will supply electricity derived from renewable resources, gas, coal and co-generation to the grid, as well as helping with energy efficiency and other demand-side initiatives. During 2015/16 IPP peaker plants will begin to deliver 1000M electricity to the grid through a R9bn investment