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IPPO moves seventh renewables bid deadline to May 30

29th March 2024

By: Terence Creamer

Creamer Media Editor

     

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The Independent Power Producer Office (IPPO) has confirmed that the deadline for submissions under Bid Window Seven (BW7) of the Renewable Energy Independent Power Producer Procurement Programme has been extended by a month to May 30 to accommodate both grid-connection quotes and a curtailment addendum published by Eskom.

The IPPO told Engineering News & Mining Weekly that a briefing note extending the timeline for application for grid cost estimate letters (CELs) to February 15 was issued at the end of January following requests from potential bidders at a bidders’ conference that took place on January 17.

“As a result of the extension of the CEL application timeline, and following consultation with Eskom, the department has approved the consequent extension of the bid submission date to allow Eskom more time to process the CEL applications, and also taking into consideration further requests from bidders to allow more time for the preparation of their bid responses.

“After following the due processes, the CEL application date extension was communicated via a briefing note on 31 January 2024, and the bid submission extension via a briefing note on 8 March 2024,” the IPPO explained in response to questions posed by Engineering News & Mining Weekly.

On whether the decision was influenced by the curtailment addendum to the Grid Capacity Connection Assessment (GCCA 2025), the office responded: “Yes, the extension of the CEL application timeline was influenced by the curtailment addendum that allows prospective bidders to bid projects in areas unlocked by the curtailment addendum.”

Published in January following the launch of BW7 on December 14, the GCCA 2025 addendum states that 3 470 MW of additional grid capacity to connect wind generation will be made available by accepting a “reasonable share of no more than 10% of curtailment”.

A total of 2 680 MW of this capacity is available in the Western Cape and 790 MW in the Eastern Cape. Capacity oversubscription

by private projects, together with an absence of a curtailment framework, during BW6 meant none of the wind projects that had been vying for a 3 200 MW allocation advanced to preferred-bidder status.

Earlier, Electricity Minister Kgosientsho Ramokgopa confirmed that the capacity unlocked through curtailment was “immediately available, while the IPPO confirmed to Engineering News & Mining Weekly that the addendum enabled the department “to award wind projects within the Eastern and Western Cape in alignment with the provisions of the request for proposals”.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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