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Monica_55905 Mar 18

South Africa Energy Minister H.E. Gwede Mantashe announces preferred bidders

South Africa Energy Minister H.E. Gwede Mantashe announces preferred bidders image
The highly anticipated list of eight preferred bidders for the South Africa RMIPPP was announced today by H.E. Honourable Gwede Mantashe, Minister of Energy, South Africa.
The successful bidders were: 
 
 
  • ACWA Power
  • Karpowership
  • Mulilo/Total
  • Oya Energy
  • Umoyilanga Energy.
 
The prices for the proposals ranged from R1,468 per MWh to R1,885 per MWh and the projects represent a significant R45 billion of private sector investment into the economy. Preferred bids included an average of 50% local content and black ownership will be 41% of the total, including 10% black women. 

Overall these projects will directly create 3,800 jobs for the duration of the 18-month construction period plus a further 13,500 during the 20 year PPA term. 

It was stipulated that these projects must reach financial close by the end of July 2021 which is “non-negotiable” and these projects will be connected to the grid from August 2022.

The Minister also announced that REIPPP 5 RFPs for a further 2600 MW of renewable energy will be released to the market at midnight on 18th March 2021, with the bid window closing on 4th August 2021. 1000 MW will be from solar PV and 1600 MW from wind.

The Minister also announced there will be four more RFP’s released in the next 12 months including 2600 MW for renewables, 3000 MW for gas, 1500 MW for coal, and 513 MW for battery storage.

In addition, the licensing threshold has been increased from 1MW to 10MW. For self-generation no licence is required.

Mike Peo of South African bank Nedbank CIB who is the funder for four of the eight projects awarded said that "this announcement, coupled with the simultaneous announcement of the release of the RFP for Round 5 of the REIPPP program is an excellent outcome at a time where security of energy and decarbonisation are top of mind for every South African. The job creation and economic stimulation brought about by energy procurement are vital post the debilitating effects of COVID and we congratulate not only the Department of Mineral Resources and Energy and the IPP office but all of the bidders who participated."