Renewables & Energy Efficiency News South Africa

Renewable energy sector celebrates opening of Bid Window 6 for REIPPPP

The Department of Mineral Resources and Energy (DMRE) recently announced the opening of a new procurement round in the country's Renewable Energy IPP Procurement Programme (REIPPPP). Bid Window 6 (BW6) will see the procurement of a further 2.6GW of renewable energy from independent power producers (IPPs).
Source: Gallo/Getty
Source: Gallo/Getty

Following closely on the awarding of preferred bidders for Bid Window 5, this new bid window is critical in the drive to get much needed additional generation capacity, and ultimately kWhs, onto the grid, said the South African Photovoltaic Industry Association (Sapvia), welcoming the news.

“The continued release of bid windows in a timely fashion demonstrates clearly that the Department of Mineral Resources and Energy are intent on harnessing renewable energy capacity to meet the country’s energy requirements and in doing so consistently, leverage this significant infrastructure programme to drive economic development," said Sapvia spokesperson Maloba Tshehla.

Solar PV will account for 1GW of procured energy in Bid Window 6, while wind energy will account for 1.6GW.

Adding vitally needed power capacity to the grid

“The announcement to open BW6, calling for proposals from IPPs, adds vitally needed power capacity to the country, which continues to struggle with strangled energy supply that is preventing the necessary economic recovery that South Africa so badly needs. This also adds impetus to the sector’s push for industrialisation, which relies on rolling procurement in order for the industry to attract the necessary market investment and reduce risk,” said Niveshen Govender, CEO of the South African Wind Energy Association (Sawea).

“South Africa can address fundamental challenges of energy access, energy security and climate change through the deployment of renewable energy. We can harness our abundant potential of increasingly cost-competitive renewable energy to service the growing demand for electricity and avoid a potential fossil-fuel lock-in, in addition to local and foreign investment. Furthermore, renewable technologies present potential for the creation of new industries, job creation and localisation across the value chain,” added Govender.

The closing date for bid submissions is 11 August 2022.

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