The Ministry of Electricity and Energy has unveiled the preferred bidders for Bid Window 7 (BW 7) of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), naming eight preferred bidders for projects with a combined contracted capacity of 1 760 MW.

Infinity Power Holding secured six projects, while Mulilo Renewable Project Developments and Scatec Solar Africa each won one. The projects will be located in Mpumalanga, Limpopo, North West and the Free State, representing investment of R31.4-billion.

Electricity and Energy Minister Dr Kgosientsho Ramokgopa noted in December that 48 bid responses were received for BW 7, totalling more than 10.2 GW, with independent evaluation committees at the Independent Power Producer office narrowing selections based on the request-for-proposals requirements.

The preferred bidders have committed to create about 7 000 job opportunities for South Africans during both the construction and operational phases of the contracts.

The eight projects will allocate 38% of their total project costs to local content, with R7.8-billion allocated during construction and R2.4-billion during operations.

The preferred bidders have also undertaken to invest at least R3-billion on black-owned enterprise procurement, as well as spent R73-million on enterprise development, R129-million on socioeconomic development and R138-million on skills development over the lifetime of the projects.

Notably, Ramokgopa indicated that he was considering the appointment of additional compliant bidders in both onshore wind and solar PV that were eligible for appointment as preferred bidders, subject to value for money negotiations and re-allocation of megawatts under the bid window.

Commercial close for BW 7 is expected in the second half of the year.

Meanwhile, Bid Window 2 (BW 2) under the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP), yielded a further eight preferred bidders, including EDF Renewables, AMEA Power and Mulilo.

BW 2 of the BESIPPPP will facilitate the procurement of up to 615 MW from facilities that can provide capacity, energy and ancillary services to Eskom at eight specified sites.

The window drew 31 bid responses during August, with selected projects valued at R12.8-billion.

Ramokgopa noted that BW 2 of the programme had a marked increase in the number of bids received compared with the first bid window, which resulted in a 35% decrease in the average evaluation price, compared with Bid Window 1 prices.

The BESIPPPP preferred bidders have committed to creating more than 1 500 job opportunities for local citizens during construction and operation of the sites, with 31% of the total project costs – or R5-billion – having been dedicated to local content spend during the construction and operational phases of the projects.

The preferred bidders in this programme also committed to spend R316-million on supplier development, skills development and socioeconomic development initiatives over the lifespan of the projects.

PROJECT DETAILS

Scatec’s 50.9%-owned project under BW 7 of the REIPPPP will comprise a 288 MW solar PV project in the Free State, called Mercury Solar PV 2, with the company having been appointed to provide operational, maintenance and asset management services to the project.

Mulilo, in turn, will construct and operate the Middlepunt 240 MW solar PV plant in the Free State, as well as five battery energy storage system (BESS) plants as part of BW 2 of BESIPPPP.

These five BESS plants, each comprising 77 MW, or 304 MWh of capacity, are called Welverdiend (Gauteng), Leeuwpoort (Gauteng), Rooikoppies (North West), Hartbeesfontein (North West) and Mercury (Free State).

Combined with Mulilo’s Oasis BESS project under Bid Window 1 of BESIPPPP, the company will provide more than 640 MW of capacity from a battery energy storage perspective, and more than 600 MW of solar PV capacity.

The remaining BESS projects under BW 2 of the BESIPPPP have been awarded to EDF, which will construct a 77 MW plant called Oasis in North West, and AMEA, which will construct 77 MW plants called Gainfar and Boitekong, in the Free State. 

Moreover, Infinity’s planned Highveld Solar plant in Mpumalanga will comprise 240 MW of capacity, similar to the Palladium Solar 1 and Copper Solar 1 plants of the company planned for Limpopo.

Infinity’s planned Vanadium Solar 1 plant, also in Limpopo, will comprise 150 MW of capacity.

The company’s two plants planned for North West, Onderstepoort Solar 1 and 2, will comprise 220 and 190 MW of capacity, respectively.