SA Energy Minister Confirms REIPPPP Bid Window 6 Will Open Next Month

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  • South Africa’s Mineral Resources and Energy Minister, Gwede Mantashe, says the country’s natural resources and the development of the renewable energy industry has the potential to accelerate the economy and set the country towards a low carbon economy state. 
  • Mantashe was addressing the Solar Power Africa conference in Cape Town, yesterday plus he spoke at the post SONA debate the day before on 15th February.
  • The Solar Power Africa 2022 Conference is currently taking place and will run until tomorrow, Friday 18 February 2022 at the Cape Town International Convention Centre. 
  • Over 80 leading speakers will feature covering the solar, storage and related energy fields.
  • There is also a stella line up of exhibitors.

“Government recognises the role that renewables are playing in the just energy transition. We are a coal-based energy economy. We need to diversify our energy mix as we transition from high carbon emissions to low carbon emissions.

“With the natural resources we have for the development of the renewable industry, it is possible to generate the much-needed energy to kick start our economy and put South Africa on a just energy transition trajectory,” he said.

According to the Minister, government’s Renewable Energy Independent Power Producers Programme (REIPPPP) has, since the first bid window in 2011, generated at least 66 756 GWh of renewable energy and added thousands of employment opportunities in the construction and operation of renewable energy power plants.

Related news: Has South Africa’s bid window round 6 been delayed over Round 5 outcome controversy? 

“The first renewable energy IPP, a solar PV project, started supplying electrical power to the grid in November 2013 and by the end of September 2021…83 IPP projects, were connected to the national grid and supplying energy to Eskom,” Mantashe said.

He added that new energy projects, which were announced as preferred bidders in Bid Window five of the REIPPPP in October last year, are expected to pour investments amounting to billions of Rands into the economy and potentially create more than 13 000 jobs.

“Through the IPPPP, 61 858 job opportunities have been created in the construction and operation of IPPs, until the end of September 2021, of which 37 673 new job opportunities were created through the solar power projects.

“However, given the scourge of unemployment in South Africa, especially among women and youth, the green energy sector should do more to move the country from job opportunities to permanent employment and manufacturing capacity,” the Minister said.

Mantashe reiterated that the abundance of natural wealth of South Africa and Africa can potentially change the trajectory of the continent.

“Africa possesses natural and mineral wealth capable of turning around country economies and the prospects of the continent. The inability to translate this potential resource into actualisation is hampered by lack of financial, technological, and human capabilities that are compounded by difficult global dynamics.

“We have, traditionally, relied on hydropower and coal. Solar PV, with recent substantial cost reductions, offers a rapid, cost-effective way to provide utility-scale electricity for the grid and modern energy services,” Mantashe said.

Participating in the post-SONA debate on 15 February, Mantashe said other power purchase agreements that will be concluded over the next two months include 2,600MW from the renewable energy bid window 5, for which preferred bidders were announced at the end of October 2021.  “In addition, at the end of March, we will issue a request for proposals for 2,600MW from renewable energy Bid Window 6. In April, there will be a request for proposals for 513MW from battery storage. Bid window 7, will follow at six-month intervals thereafter.” said Mantashe.

Author: Bryan Groenendaal




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