Thread by @GwedeMantashe1

The Risk Mitigation IPP Procurement Programme (RMIPPPP) was released to the market in August 2020. The aim was to alleviate the electricity supply constraints and to reduce the extensive utilisation of diesel-based peaking electrical generators in the medium-to-long-term.

https://twitter.com/GwedeMantashe1/status/1372550453414797316

The Bid Submission closed on 22 December 2020 and attracted a total of 28 bid responses with a potential contracted capacity of approximately 5 117MW. This clearly demonstrates a sustained private sector interest in participating in the South African energy landscape.

The Risk Mitigation IPP Procurement Programme succeeded in attracting project proposals featuring a variety of technology combinations. #InvestinSAEnergy

The quantity & quality of the bid responses & potential megawatt of contracted capacity allowed for a competitive price evaluation. All compliant bids were subjected to local & international benchmarking which is necessary to ensure that we receive Value for Money.

The evaluation process has resulted in the selection of 8 (eight) Preferred Bids totalling 1 845 and a further 3 (three) Eligible Bids totalling 150MW. #InvestinSAEnergy

8 Preferred Bidders in alphabetical order:

•ACWA Power Project DAO
•Karpowership SA Coega
•Karpowership SA Richards Bay
•Karpowership SA Saldanha
•Mulilo Total Coega
•Mulilo Total Hydra Storage
•Oya Energy Hybrid Facility
•Umoyilanga Energy

The solutions provided by these preferred bidders are from a combination of a range of technologies that include, Solar PV, Wind, Liquified natural gas & battery storage. The prices for the proposed solutions range from R1 468 per MWh to R1 885 per MWh. #InvestinSAEnergy

The weighted average price is R1 575 per MWh.

These 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 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. #InvestinSAEnergy

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. #InvestinSAEnergy

I am pleased to announce the first bidding round in response to the Section 34 Determination. The Request for Proposal (RFP) for the procurement of 2 600 megawatts under the Renewable Energy IPP Procurement Programme Bid Window 5 will be released to the market at Midnight today.

Of the 2 600 megawatts from this Bid Window 5, 1 600 megawatts will be from wind and 1 000 megawatts from Solar PV. Given the energy challenges that we are facing the objective is to get these projects connected to the grid as soon as possible. #InvestinSAEnergy

We intend to release four more Requests for Proposals within the next 12 months. These will include:
• 2 600MW from renewable energy,
• 3 000MW from gas,
• 1 500MW from coal, and
• 513MW from battery storage.

#InvestinSAEnergy

In line with the IRP and the provisions in the Electricity Regulations of New Generation Capacity, additional Determinations will be issued to Eskom and Municipalities as and when requests are received. #InvestinSAEnergy

The Department is working with the necessary speed to review the licensing threshold for increased embedded generation. #InvestinSAEnergy

The energy generation landscape of our country is evolving. Concerted effort to ensure that the IPP Procurement Programmes steam ahead to deliver secure energy supply from a diverse range of energy sources, in line with the IRP 2019, is at the core of our work.

Collectively, our interventions give effect to the fourth priority intervention of the Economic Reconstruction and Recovery Plan, that is, to rapidly expand our country’s energy generation capacity. #InvestinSAEnergy