The projects that have progressed to date could yield a combined investment of around R70-billion. However, it is understood that some of the preferred projects identified in December are struggling to meet the June deadline for financial closure. Should projects fail to close, allocated capacity, as well as the unallocated 1 165.9 MW, may be added into the bidding mix for the third bid window, yet to be scheduled.
The Department of Energy and the National Treasury selected 19 projects from 79 proposals submitted by the March 5 deadline for the second bid window. Following two bidding rounds, a total of 47 preferred bidders have been named, involving projects that collectively represent renewables capacity of 2 459.4 MW. Through the REIPPP, government is seeking to procure 3 725 MW of capacity, to be introduced into South Africa's power generation mix between 2014 and 2016.
Renewable Energy IPP Program bids are expected to plan to avoid the CO2 and GHG emissions, land, water pollution and environmental degradation associated with using fossil fuels to generate electricity, they must also must meet mandatory local content provisions, which the government has included to motivate project developers to build renewable energy manufacturing facilities in the country which, it is expected, will provide a significant boost to job creation. Overall, the programme is expected to attract investment of around R100-billion between 2012 and 2016.
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