Mantashe announces 25 preferred bidders for renewable energy projects

Minerals and Energy Minister Gwede Mantashe has announced the preferred bidders appointed under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) bid window 5 meant to supplement the power generation supply from Eskom as the country continues to experience load shedding.

The request for proposals was sent out in April this year, with the government committing to announce preferred bidders before the end of October.

To date, the government has procured and signed agreements with 93 Independent Power Producer projects (IPPs), said Mantashe during a media briefing on Thursday.

“89 of these projects including Bid-Window 4 projects signed in 2018 are already connected to the grid and supplying 6,855 MW which is equivalent to two of Eskom’s six-pack coal-fired power stations. These include 86 renewable energy projects, two diesel-fired peaking plants, and five small power plants in the form of hydropower, landfill gas and biomass.

“In addition to the projects mentioned, we have selected 11 Preferred Bidder projects totalling 1,995 MW under the Risk Mitigation Independent Power Producer Procurement Programme. Power from these preferred bidder projects is expected to be connected to the grid within 18 months after the signing of commercial agreements currently set for the end of January 2022.”

The department is also in the process of procuring 160MW from existing renewable energy IPPs.

Bid window 5 aims to procure 2,600 MW, which includes 1,600 MW from onshore wind and 1,000 MW from Solar PV plants.

Out of the 102 bids received, the government selected 25 projects which will procure 2,583 MW.

“A noticeable development is that we have Preferred Bidder projects in provinces not in previous renewable energy bid windows. Seven of the selected Preferred Bidders are located in the Free State Province, and one in KwaZulu-Natal,” said Gwede.

The 25 projects are expected to inject a total private sector investment amount of about R50 billion to the South African economy and also create 13,900 job opportunities.

“These projects will continue to make a difference in the lives of not only those communities in the vicinity of the proposed power plants who will own 2.5 percent of the Preferred Bidder Projects. The Preferred Bidders have also committed a total of R 2.7 billion towards Socio-Economic Development and Enterprise and skills development initiatives over the 20-year lifetime of the projects,” said Gwede.

These are the preferred bidders for the project:

• 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