SAWEA welcomes 1 600 MW of onshore wind projects to be procured under REIPPPP bid window 5
The South African Wind Energy Association (SAWEA) has welcomed the announcement that 12 onshore wind projects have been included in Bid Window 5 (BW5) of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
The Department of Mineral Resources and Energy (DMRE) on October 28 announced the 25 preferred bidders for BW5.
The 12 wind projects will add about 1 600 MW of new generation capacity and were selected from more than 100 submissions.
The wind projects include the Coleskop, San Kraal, Phezukomoya, Beaufort West, Trakas, Sutherland, Rietrug, Waaihoek and Dwarsrug wind facilities and the Brandvalley, Rietkloof and Wolf wind farms.
“This is a huge step towards rolling procurement, which is what the country and wind power sector needs in order for renewables to be able to deliver adequate energy to the country and help shift the economy onto a positive trajectory,” SAWEA chairperson Mercia Grimbeek says.
The wind and solar power weighted-average bid price for this round is pegged at R473.94/MWh, indicating the affordability of green electricity for new power generation in South Africa, at a time when the country is experiencing rolling blackouts.
The 25 wind and solar projects announced under BW5 represent more than R50-billion of investment for the South African economy and will deliver almost 14 000 job opportunities.
“Consecutive bidding rounds will enable local manufacturing facilities to be re-established and the potential expansion of already operating manufacturers, which is crucial in creating long-term sustainable jobs,” Grimbeek adds.
SAWEA notes that, to enable the required quantity and quality of components will require at least two to three years of investment and development, reinforcing the need for rolling procurement without interruptions or delays. This will allow all aspects of the value chain, and not only the manufacturing sector, to expand, she emphasises.
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