South Africa: REIPPPP Bid Window 6 Targeted to Open 28 September 2021 – Next Month

• In a briefing to the Portfolio Committee on Mineral Resources and Energy yesterday, South Africa’s Mineral Resources and Energy head of strategy, Lucas Mulaudzi outlined a three year horizon for the various energy procurement programmes the department has implemented under the country’ Integrated Resource Plan 2019 (IRP 2019) and the Risk Mitigation Independent Power Producer Procurement Programme. 
• A total of 14400MW wind power capacity plus 6000MW of solar PV technology is allocated for procurement leading up to 2030 in the IRP 2019. 

Over the next three years, Mulaudzi reported that the following technologies and associated capacities will be allocated for procurement:

• 4800 MW of wind
• 2000 MW of solar PV
• 1500 MW of new build coal
• 3000 MW of gas
• 513 MW of battery energy storage

Bid Window Round 6

The timetable includes a target date of 28^th  September 2021 for the launch of REIPPPP Bid Window Round 6 with targeted bid-submission date of 1st February 2022.

Related news: REIPPPP Round 5 Massively Oversubscribed 

Bid Window Round 7

REIPPPP Bid Window Round 7 is scheduled to open on 15^th February 2022 with a targeted submission deadline date of 21^st June 2022. Preferred bidders are expected to be announced 30^th September 2022. Financial close deadline is targeted for 16^th February 2023.

Energy Storage

A request for proposals for energy storage is targeted for release on 25^th February 2022. Preferred bidders will be announced on 4^th May 2022. Preferred bidders must reach financial close by 5^th September 2022.

Gas to Power Procurement

A target date of 28^th February 2022 is set for the launch of a gas power generation request for proposals (RFP) . Bid close is scheduled for 2^nd September 2022 while financial close target date is 7 July 2023.

Coal Power Procurement

The coal power procurement RFP will be launched 31^st March 2022. Bid submissions need to in by 4^thDecember 2022 and preferred bidders are expected to be announced on 31^st MARCH 2023. Financial close deadline for this programme is targeted for 6^th April 2024.

2000MW Risk Mitigation IPP Procurement Programme (RMIPPPP) Deadline Extension

The preferred bidders in this programme were announce on the 18^th March 2021 and had to reach financial close by 31^st July 2021. The DMRE has controversially granted them a two month extension to 30 September. Mulaudzi said the delay was based on a lack of readiness by government and Eskom rather than the bidders. He also acknowledged that a legal challenge against the three Karpowership SA projects, which makes up around two thirds (1220MW) of the allocated 2000 MW, posed a risk to the programme.

Read more on the Karpowership fiasco HERE

Author: Bryan Groenendaal