DMRE announces 5th Preferred Bidder under the BESIPPPP BW1 and extends submission deadlines for BESIPPPP BW2 & REIPPPP BW 7

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  • On 30th of November 2023 the Minister of Mineral Resources and Energy, Minister Gwede Mantashe announced the appointment of four (4) Preferred Bidders under the BESIPPPP Bid Window 1.
  • At the time, the Minister indicated that the Department would enter into further value for money negotiations with one more Eligible Bidder in order to appoint a Preferred Bidder for the fifth substation.

These negotiations have concluded and the Department is pleased to announce the appointment of AGV Projects (Pty) Ltd to provide 153 MW Battery Energy Storage capacity, through its project named Red Sands BESS, at the fifth substation site, as follows:

Bid ID Project Name Substation Project Cost Evaluation Price CCR/
ES_BS_0017_001 Red Sands BESS Garona Substation R6 434 636 224 R16 501 242 802 R546.50


The 513 MW BESIPPPP BW 1, which is executed by the Independent Power Producer Office under the stewardship of the DMRE, was the first largest utility-scale energy storage programme ever implemented in South Africa. This programme was launched on the 7th of March 2023. The Department congratulates the appointed Preferred Bidder and wishes them well in their preparations towards Commercial Close.

Extension of Bid Submission Date for REIPPPP BW 7 to 30 May 2024

On 31st of January 2024 the Department issued a Briefing Note that extended the timeline for application for Cost Estimate Letters (CELs) to the 15th of February 2024, following requests from Potential Bidders at the Bidders’ Conference. As a result of the extension of the CEL application timeline, and following consultation with Eskom regarding the time required to process CEL applications, the Department has on the 8th March 2024 communicated to registered prospective Bidders, via a Briefing Note, the consequent extension of the Bid Submission Date to allow Eskom more time to process the CEL applications, and also taking into consideration further requests from Bidders to allow more time for the preparation of their Bid Responses.
The new Bid Submission Date for REIPPPP BW7 is 30 May 2024.

Extension of Bid Submission Date for BESIPPPP BW 2 to 6th June 2024

The Department has approved an extension of the Bid Submission Date for BESIPPPP BW 2 from 30 April 2024 to 6th June 2024. This was approved, taking into consideration the timelines indicated by Eskom for the processing of CEL applications, as well as requests from Bidders to allow more time for the preparation of their Bid Responses. Potential Bidders were informed of the new timelines in a Briefing Note that was communicated on 28th March 2024.

The new Bid Submission Date for BESIPPPP Bid Window 2 is 06 June 2024.

Potential Bidders are further reminded that the period for clarification questions under these two new bid windows is thirty (30) days prior to bid submission, and to ensure that they refer to all new Briefing Notes that are issued to Registered Bidders from time to time, which include clarifications or updates to requirements under the Request for Proposal (RFP).

Author Bryan Groenendaal

Source: DMRE


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