- Following the confirmation of all required regulatory approvals, South Africa’s Minister of Mineral Resources and Energy will host a project agreement signing ceremony with the first three Preferred Bidders REIPPPP Bid Window 5 on 22nd September in Centurion.
- The 3 projects that are ready to sign are Coleskop Wind Power, San Kraal Wind Power and Phezukomoya Wind Power.
- All three 140MW projects are developed and owned by EDF Renewables (South Africa) which is a wholly owned subsidiary of the French utility EDF Group.
The Ministerial Determination for 2 600 MW capacity was gazetted on 25 September 2020 for Bid Window 5. The Request for Proposals under Bid Window 5 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) was launched on 12 April 2021, and the subsequent announcements of the successful bidders were made on 28 October 2021. Financial close deadline was extended from 31st March 2022 to 30 September 2022.
REIPPPP Bid Window 5 has been marked by extended delays in financial close deadline and tender rigging allegations. The country’s competition commission is also investigationg the skewed outcome. Read more
The tariffs bided were unsustainably low and not The average weighted price bid for solar comes in at (R) 42.9c kW/h while the average bid for wind is (R) 49.5c kW/h. Industry experts claim that the winning tariffs are too low to be realistic and may be sponsored. Read more.
The majority of the projects who won preferred bidder status were not shovel-ready and had outstanding development works activities including CEL, EIA and other permitting. The increase in cost of components like wind turbines, inverters and solar panels during the extended delay has found winning bidders with ‘stranded’ financial models that may not be bank presentable.
The DMRE said that information will be provided on the status of the preparations to sign with the remaining twenty two (22) Preferred Bidders under the REIPPPP BW5 at the press conference.
Author: Bryan Groenendaal