Renewable Energy Independent Power Producer Procurement Programme – Bid Window 7, South Arica – update
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.
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.
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 procurement (B-BBEEE) on qualifying small enterprises and exempt micro-enterprises, and an additional R333-million in B-BBEEE 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.
Planned Start/End Date
Not stated.
Latest Developments
The department is further considering the appointment of additional compliant bidders in onshore and solar PV that are eligible for appointment as preferred bidders, subject to value for money negotiations and the re-allocation of megawatts under this bid window from onshore wind to solar PV technology. Further announcements will follow in this regard.
Key Contracts, Suppliers and Consultants
Infinity Power Holding (six projects); Mulilo Renewable Project Developments (one project); and Scatec Solar Africa (one project).
Contact Details for Project Information
Independent Power Producer project officer, email query@ipp-renewables.co.za.
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