News Flash
- South Africa’s Ministry of Mineral Resources and Energy has released project details on the 8 successful bidders in the country’s 2000MW Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP).
- The 8 projects total 3282.26MW generation capacity which includes wind, solar, gas, diesel and battery energy storage system (BESS) power technologies.
- The biggest project is ACWA Powers’ 587mw hybrid facility which consists of 422MW solar, 150MW battery and 15MW diesel generator.
- The scope, scale and complexity of the projects have raised key contractual issues. Read more
- Are the IPP’s going to deliver on time?
The 8 projects will inject a total private sector investment amount of R45 billion to the South African economy, with an average local content of 50% during the construction period. South African entity participation from these projects is 51% with black ownership at 41%.
About Three Thousand Eight Hundred (3 800) job opportunities will be created during the 18 months construction period and a further 13 500 during the 20-year Power Purchase Agreement (PPA) term.
The Preferred Bidders are required to reach Financial Close by no later than the end of July 2021. Due to the urgency to bring power online, this date is not negotiable. It is for the Preferred Bidders to manage all the risks to reach financial close.
It is envisaged that, first power from these projects will be connected to the grid from August 2022.
Author: Bryan Groenendaal
