Name of the Project
Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) – Bid Window 7 (BW7).

Location
South Africa.

Project Owner/s
Department of Mineral Resources and Energy (DMRE).

Project Description
In December 2023, the DMRE invited interested parties to register prospective bids under the REIPPPP – BW7.

A total of 5 000 MW will be procured from projects using solar photovoltaic (PV) and onshore wind technology. The new generation to be procured will include 1 800 MW of solar PV and 3 200 MW of onshore wind.

Potential Job Creation
Not stated.

Capital Expenditure
Not stated.

Planned Start/End Date
The bid submission date has been extended to May 30, 2024.

Latest Developments
The DMRE has confirmed another extension to the bid submission deadlines for the current renewables procurement round, as well as Battery Energy Storage Independent Power Producer Procurement Programme BW2.

The deadline for BW7 of the REIPPPP, which had already been moved from April 30 to May 30, has been extended to August 15.

No reasons were provided for the extension, but the decision coincides with a decision by the National Energy Regulator of South Africa (Nersa) to extend, from May 25 to June 17, the deadline for comment on State-owned power utility Eskom’s application to preserve and reserve grid capacity for IPPs participating in public procurement.

In its consultation paper, Nersa makes specific reference to BW7, as the request for grid reservation/preservation for projects being procured in line with Section 34 of the Electricity Regulation Act would have a direct  bearing on the round.

Eskom indicates that public procurement could fail, should the utility be disallowed from discriminating in favour of Section 34 IPPs at the expense of IPPs being developed on the back of private power purchase agreements.

“Without any form of protection, public procurement programmes remain incapable of competing with the much more agile and well-funded private-sector energy procurement programmes.”

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Independent Power Producer project officer, email query@ipp-renewables.co.za.