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IPP Office’s Evolution – From Power Procurement to Grid Infrastructure Development

9th October 2025

     

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As the Independent Power Producers Office (IPPO) commemorates 15 years of impact through the flagship Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), it steps into an expanded role at a pivotal moment in South Africa’s energy transition.

Since its inception, REIPPPP has become a cornerstone of the country’s energy procurement strategy, securing over 7 700 megawatts (MW)of renewable power while unlocking R85.3 in local content investment, creating over 96 637 job years, and driving an impressive R4.5 billion in socio-economic and enterprise development. Through its evolving mandate, the IPPO remains central to delivering procurement solutions that balance urgent electricity needs with far-reaching socio-economic transformation.

Driven by the need to address a number of process and structural inefficiencies confronting the programme and align with evolving market dynamics, the IPPO is working with the Department of Electricity and Energy (DEE) to undertake the review of REIPPPP. This review, together with the concurrent process of designing the next Bid Window, is aimed at improving the agility of the programme in supporting generation adequacy; aligning with other central frameworks such as IRP and TDP; ensuring value for money; and further strengthening the programme’s contribution to localisation, industrialisation, and socio-economic imperatives. Success for this review process should result in a sustainable and future-proof REIPPPP that supports long term market confidence and responds to changing industry and market conditions. 

For the wind energy industry, the review process is a welcomed piece of the puzzle in the suite of reform measures aimed at streamlining the country’s Electricity Supply Industry (ESI). The absence of wind allocations in Bid Windows (BW) 6 and 7, coupled with several BW5 projects failing to reach financial close, accentuated systemic design flaws and wider sector challenges. These include limited grid access, escalating bid preparation costs, prolonged procurement timelines, regulatory misalignments, and financing hurdles. The wind industry stands ready to work alongside the IPPO to shape a future-fit procurement framework that enables delivery at scale.

Now, with the draft Integrated Resource Plan (IRP) setting ambitious renewable energy targets, reforms to REIPPPP are expected to create the foundation for faster, more efficient procurement processes—ensuring future bid windows can meet South Africa’s growing demand.

Looking ahead, the IPPO’s role extends beyond generation procurement. The launch of the first bid window for the Independent Transmission Projects(ITPs) marks a major shift toward strengthening and expanding the national transmission network. This positions the IPPO not only as a driver of new generation capacity but also as a key player in delivering the infrastructure needed to integrate renewable energy into the grid.

Recognising the ITP’s transformative potential in unlocking grid capacity, the IPPO has partnered with the Windaba Conference & Exhibition 2025, contributing to this year’s theme: “Breaking the Gridlock. Wire for Growth.”

Participating in a government panel alongside NERSA, NTCSA, Eskom and the Department of Electricity & Energy, Ms Precious Edward, Head of the IPP Office, noted: “Our journey over the past 15 years has shown that procurement can deliver more than power – it can drive industrialisation, jobs, and transformation. As we reform REIPPPP and expand into transmission, we are laying the foundation for a fit-for-purpose programme that will secure South Africa’s diverse energy future while ensuring communities benefit along the way.”

The IPPO will join Windaba 2025 with a senior delegation, engaging on solutions to unlock grid capacity, accelerate renewable energy roll-out, and strengthen public procurement to meet the demands of an evolving energy mix.

“The REIPPPP reforms come at a critical time. To achieve the wind targets in the draft IRP, South Africa needs a procurement framework that can move at pace, backed by transmission development. The IPP Office’s expanded role is essential to making this a reality,” Adds Niveshen Govender, CEO of the South African Wind Energy Association (SAWEA),

Together, the IPPO and the wind industry are aligned in their commitment to driving procurement reforms, unlocking grid solutions, and accelerating renewable energy deployment. Drawing on lessons from the past 15 years, this partnership is firmly focused on the future—building frameworks that sustain renewable energy growth, expand grid capacity, and ensure South Africa’s just energy transition delivers lasting impact for all.

Edited by Creamer Media Reporter

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