DMRE to finalise power purchase agreements over next 2 months

Mineral resources and energy minister Gwede Mantashe says over the next two months, the department will finalise power purchase agreements that are set to address the country's energy shortfall. Mantashe said this when he participated in the debate on the State of the Nation Address on Tuesday, 15 February.

16 Feb 2022

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“Next month and in April, we will conclude the power purchase agreements for the 2,000MW Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP)."

Mantashe said other power purchase agreements that will be concluded over the next two months include 2,600MW from the renewable energy bid window 5, for which preferred bidders were announced at the end of October 2021.

“In addition, at the end of March, we will issue a request for proposals for 2,600MW from renewable energy Bid Window 6.

“In April, there will be a request for proposals for 513MW from battery storage,” he said.

Mantashe said thereafter, additional bid windows, including bid window 7, will follow at six-month intervals.

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President Cyril Ramaphosa announced in the SONA last week that due to the country’s ageing power stations, poor maintenance, policy missteps and the ruinous effects of state capture, South Africa has a shortfall of around 4,000MW of electricity.