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

Location
South Africa.

Project Owner/s
Department of Electricity and Energy (DEE).

Project Description
In December 2023, the then Department of Mineral Resources and Energy invited interested parties to register prospective bids under the REIPPPP – BW7.

The bidding round, which was launched in December 2023, had an overall allocation of 5 000 MW, divided between solar PV (1 800 MW) and onshore wind (3 200 MW).

The solar PV allocation was substantially oversubscribed, with a total of 40 projects submitted, representing a combined capacity of 8 526 MW.

However, only eight onshore wind projects with a combined capacity of 1 692 MW were submitted. The imbalance in the bid response led to a reallocation of capacity from wind to solar PV for the round, where winning bidders would secure 20-year power purchase agreements and their electricity would be bought by Eskom.

The Ministry of Electricity and Energy unveiled eight preferred solar PV bidders – with a combined contracted capacity of solar generation of 1 760 MW, on December 23, 2024.

• Highveld Solar Consortium (240 MW), Mpumalanga – Infinity Power Holding;
• Palladium Solar 1 Consortium (240 MW), Limpopo – Infinity Power Holding;
• Copper Solar 1 Consortium (240 MW), Limpopo – Infinity Power Holding;
• Vanadium Solar 1 Consortium (150 MW), Limpopo – Infinity Power Holding;
• Middelpunt Solar PV (240 MW), Free State – Mulilo Renewable Project Developments;
• Mercury Solar PV 2 (240 MW), Free State – Scatec Solar Africa;
• Onderstepoort Solar 1 Consortium (220 MW), North West – Infinity Power Holding; and
• Onderstepoort Solar 1 Consortium (190 MW), North West – Infinity Power Holding.

On July 23, 2025, following the DEE’s approval of the re-allocation of megawatts under BW 7 from onshore wind to solar technology, the department appointed six additional solar PV projects as preferred bidders. Together, these projects have a combined capacity of 1 290 MW. The bidders are:

• Dwaalboom 3 Solar (180 MW), Free State – Red Rocket South Africa;
• Virginia 4 Solar Park (210 MW), Free State – Red Rocket South Africa;
• Florida Solar Park (200 MW), Free State – Red Rocket South Africa;
• Kroonstad PV cluster: Oslaagte Solar 2 (240 MW), Free State – Scatec Solar Africa;
• Kroonstad PV cluster: Oslaagte Solar 3 (240 MW), Free State – Scatec Solar Africa; and
• Kroonstad PV cluster: Leeuwspruit Solar (220 MW), Free State – Scatec Solar Africa.

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

The eight projects will allocate 38.8% 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, R2-billion in broad-based black economic-empowerment (B-BBEE) procurement on qualifying small enterprises and exempt micro-enterprises, and an additional R333-million in B-BBEE procurement specifically for black women.

Further, preferred bidders have committed to spend R73-million on enterprise development, R129-million on socioeconomic development and R138-million on skills development over the lifetime of the projects.

Capital Expenditure
Total investments from the eight solar PV preferred bidders announced on December 23, 2024, amount to R31.4-billion.

The estimated total project cost for the Kroonstad PV cluster project is estimated at R13-billion. The projects will be financed with up to 90% nonrecourse project debt and the remaining by equity from the owners. Financial close is expected in 2026.

Planned Start/End Date
Not stated.

Latest Developments
The DEE has appointed a further eight compliant bidders – four under the wind allocation and four under the solar allocation – eligible for appointment as preferred bidders, subject to value for money negotiations.

Further announcement will be made in this regard once these processes have been concluded.

Key Contracts, Suppliers and Consultants
Infinity Power Holding (six projects); Mulilo Renewable Project Developments (one project); Red Rocket South Africa (three projects) and Scatec Solar Africa (four projects).

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