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There is ‘huge’ appetite by the private sector to take part, but infrastructure limitations persist Grid capacity access continues to be one of the main constraints to the South African government allocating new build projects under the country’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). On Monday (23 December), during his last update for 2024 on the country’s Energy Action Plan (EAP), Minister of Electricity and Energy Kgosientsho Ramokgopa announced solar but no wind projects as preferred bidders for Bid Window 7 under the REIPPPP. “On wind, the prices we have received are a bit exorbitant… or more than what we think we can afford. We are not going to announce preferred bidder status for wind. We think there is room for negotiation. “Mr [Bernard] Magoro [head of the Independent Power Producers Office] and the team will go back to the bids that were submitted. “We must remember that we must protect NTCSA [National Transmission Company of SA] as a procurer,” said Ramokgopa. IPP head Magoro said: “We have not announced the wind preferred bidders… as the Minister said, we are… negotiating with those bidders.” Ramokgopa said 48 bids had been submitted for projects totalling 10.2GW – 40 for solar PV and eight for wind projects. Grid limitations continue to inhibit REIPPPP rollout Due to grid capacity limitations, 23 bidders with grid access were selected to go on to the next stage – 19 of these bids were for solar PV and four for wind, the Minister said. “There is huge appetite by private sector to participate, but the limiting factor is grid capacity. Grid is becoming a binding concern. It will undermine the country from benefiting from these renewable energy resources. The capacity issue needs to be resolved,” said the Minister. With regard to Bid Window 2 for battery energy storage projects which targeted substations, the Minister reiterated that eight sites were selected for the North West, Free State and Gauteng. This second Bid Window called for 615MW battery energy storage capacity and Ancillary Services in line with the power system services requirements as set out by the System Operator. The eight substation sites are Ararat, Mercury, Carmel, Hermes, Ngwedi, Midas, Marang and Bighorn substations. |
