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South Africa’s Minister of Electricity and Energy, Dr. Kgosientsho Ramokgopa, made a significant announcement during the year’s final Energy Action Plan briefing in Tshwane. Dr. Ramokgopa revealed the eight preferred bidders for the seventh bid window of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and the second bid window of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP).
The announcement follows a major milestone for the country, with nearly 300 days of uninterrupted power supply in 2024, marking the longest period without load shedding in five years. Dr. Ramokgopa emphasized that while the country celebrates this achievement, the goal is to make uninterrupted power supply a standard rather than an exception.
The solar projects selected under Bid Window 7 will contribute 1,760 Megawatts (MW) of power to the national grid, with an investment of R31.4 billion. These projects will be spread across Mpumalanga, Limpopo, Free State, and North West. The solar initiatives are expected to create 6,971 jobs and allocate 38.8% of the budget—R7.8 billion—towards local content during the construction phase.
Additionally, the second bid window of BESIPPPP will provide 615 MW of battery storage capacity across eight sites in North West, Gauteng, and Free State. This portion of the initiative, worth R12.8 billion, is expected to generate 1,570 jobs throughout the construction and operational phases.
Environmental and Health Benefits
Dr. Ramokgopa highlighted the environmental and health advantages of transitioning away from coal. The renewable energy projects are expected to improve air quality and significantly reduce the country’s carbon dioxide emissions, contributing to global efforts to mitigate climate change.
Legislative Support for Renewable Energy Growth
The push towards renewable energy is further supported by the Electricity Regulation Act Amendment, which will take effect on January 1, 2025. The amendment is expected to facilitate the procurement of up to 5,000 MW of renewable energy capacity, shaping the future of South Africa’s energy sector.
With the projects set to reach commercial close in the next six months, these initiatives mark a pivotal shift in South Africa’s energy strategy. By focusing on solar and battery storage, South Africa is positioning itself as a leader in renewable energy on the African continent while ensuring greater energy security and sustainability. |
