- This morning South Africa’s Independent Power Producer (IPP) Office confirmed the Risk Mitigation 2000MW new power generation procurement timeline.
- This follows South Africa’s Department of Mineral Resources and Energy (DMRE) issue for a Request for Proposals (RFP) on 23rd August 2020 for the Risk Mitigation Independent Power Producers Procurement Programme (RMIPPPP). Read more
- The programme seeks to procure 2000 MW from a range of energy sources and technologies.
- All power procured under this programme is expected to be fully operational by not later than the end of June 2022.
The deadline for bid submissions is 24th November 2020. The bid opening will be done on 28th and 29th after a few days COVID embargo. Evaluations will commence on 30th November and the preferred bidders are expected to be announced no later than January 2021. The preferred bidders are given 4 months to reach financial close. Final PPA’s will be signed in June 2021.
Link to RFP here
The RFP is designed to support Broad Based Black Economic Empowerment initiatives including ownership and localisation. Bidders will have to make commitments in terms of job creation, socio-economic development, supplier and enterprise development and skills development. Stringent local content thresholds and targets have been introduced that should provide impetus to the local construction and manufacturing sectors. This RFP is expected to attract investment in the region of R40 billion.
Author: Bryan Groenendaal