- South Africa’s Independent Power Producers Office (IPPO) and the Department of Electricity and Energy (DEE) has appointed Ms Precious Mmabakwena Edward as the new Head of the Independent Power Producers Office (IPPO), effective 1 September 2025.
Ms Edward brings nearly two decades of extensive experience in South Africa’s power generation sector, spanning both fossil-fuel and renewable energy. She currently serves as the Chief Executive of ENGIE Kathu Solar Facility, one of the first multibillion-rand Concentrated Solar Power (CSP) projects successfully developed Energy Independent Power Procurement Programme (REIPPPP).
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Her distinguished career at Eskom included serving as Head of Fuel Sourcing, where she directed procurement strategies under tight governance controls, and as a Contracts Lead on the Medupi Power Station project, managing multi-billion-rand commercial and contractual frameworks. Ms Edward holds a BTech in Electrical Engineering, a Master’s in Business Leadership (MBL), and an LLB degree. This unique combination of technical, business, and legal expertise equips her to navigate complex operational, financial, and governance challenges at the highest level.
IPP Office facing major legal challenges
Since the Independent Power Procurement Office (IPPO) was seconded to the Central Energy Fund in 2017 and then purged in 2019 to fall under the Department of Mineral Resources (DMRE), the ability of the country to procure new generation capacity under the leadership of Bernard Magoro, has declined dramatically. Read more
After multiple deadline extensions, Magoro recently confirmed that he has called the bid bonds (termination) on 14 projects which failed to reach commercial close in REIPPPP Bid Window 5.
The outcome of Bid Window 5 has been racked with controversy and allegations of tender rigging. Twenty-one of the twenty-five preferred bidders were found to have the same Broad Base Black Economic Empowerment (BBBEE) local partner in H1 Holdings. Most of the projects that won preferred bidder status were not shovel-ready and had outstanding development works activities including environmental impact assessments, grid feed-in cost estimate letters and other permitting. The tariffs bided were unsustainably low and not bankable. The average weighted price bid for solar came in at (R) 42.9c kW/h while the average bid for wind was (R) 49.5c kW/h. Only eleven of the twenty-five projects reached commercial close after multiple commercial close deadline extensions.
In a press briefing earlier this year, Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, said pulling the bid bonds was necessary for the credibility of the REIPPP Programme. “These (bid bonds) are legally binding documents, we are going to pull the bid bonds,” he said, expressing impatience with the fact that contracts were not being honoured. “If we land in court, let’s land in court, we must stick to the rules of this programme,” he added.
Of the fourteen failed projects, one bidder, the TotalEnergies/Mulilo/Du Plessis 75MW solar PV project consortium has agreed to pay their outstanding bond of R15 million.
Foreign independent power producer (IPP), Globeleq, and the Ikamva Consortium made up another foreign IPP, Mainstream Renewable Power plus local BBBEE partners, Africa Rainbow Energy & Power (AREP) and H1 Holdings, who make up more than 45 % of black ownership, are contesting payment of bid bonds for six 75MW solar projects and six 140MW wind projects. According to clauses 26.1 and 26.2 of the general requirements, rules, and provisions of REIPPPP Bid Window 5, the consortium is liable to pay the IPP Office a total of R254.8 million calculated at R200000.00 per MW as a preferred bidder.
The Engie/Pele Green Energy/Sannapos Solar PV Consortium are also allegedly contesting payment of their bid bond of R15 million for a failed 75MW solar project.
Bid Window 7 Controversy
The Mulilo and Scatec consortiums were awarded 240 MW each while Infinity Power (part of Masdar) dominated by winning six of the eight projects totalling 1280MW with local Broad Based Black Economic Empowerment (BBBEE) partner, Pele Green Energy. This has raised questions on the preferential treatment of BBBEE partners and how the IPP Office adjudicates projects because Pele Green Energy, along with their consortium members, is contesting payment of a bid bond relating to Bid Window 5.
Edward’s appointment comes at a pivotal moment, as the IPPO marks 15 years since its establishment. Looking forward, the IPPO will be transformed into a more agile, efficient, and impactful institution that responds to modern energy challenges. Under her leadership, the IPPO will:
- Advance transformation and inclusivity by ensuring greater participation of women, youth, and persons with disabilities in the energy sector;
- Drive local manufacturing and industrialisation opportunities, aligned with the South African Renewable Energy Masterplan (SAREM);
- Maximise socio-economic development benefits in future procurement rounds; and
- Introduce innovative procurement models that strengthen security of supply, affordability, and alignment with South Africa’s just energy transition priorities.
This appointment reinforces the Department of Electricity & Energy’s Strategic Plan 2025-2030, advancing priorities that include:
- Achieving Universal Access to Electricity by 2030,
- Promoting industrialisation and localisation,
- Driving a just energy transition with jobs and skills at the centre, and
- Strengthening governance, efficiency, and accountability in energy procurement
As the Department advances its Strategic Priorities of achieving universal access to electricity by 2030, accelerating localisation and manufacturing, and driving a just energy transition, Ms Edward’s leadership will be instrumental in steering the IPPO from being a pioneering institution into becoming a symbol of national renewal.
Author: Bryan Groenendaal
