DMRE launches bid window for electricity generation

South Africa on Thursday launched three bidding rounds for 7,615MW of new power generation from renewable energy, natural gas and battery storage, part of efforts to overcome record power cuts crippling economic output.

Source: Alex Eckermann/Unsplash

The Department of Mineral Resources and Energy said in a statement it had issued three requests for proposals (RFPs) for independent power producers to generate 5,000MW of renewable energy, 2,000MW from gas and 615MW from battery storage.

South Africa started procuring power from private developers more than a decade ago to supplement struggling state utility Eskom's ailing coal-fired power station fleet.

An aerial view of South Africa's Koeberg Nuclear Power Station, in Cape Town. Source: Reuters/Esa Alexander

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Before Thursday it had launched six renewable energy bidding rounds dominated by wind and solar projects, one battery storage round, as well as an emergency "risk-mitigation" round that opted for gas-fired powerships among preferred bidders alongside renewable energy projects.

The emergency round got bogged down in environmental opposition and court challenges, with the bulk of the projects still seeking funds to build as of last month.

To date 90 renewable energy projects have completed construction and are operational, adding 6,180MW of capacity to the grid, while nine projects representing more than 1,000MW are currently under construction, energy minister Gwede Mantashe said in a written response to lawmakers distributed by parliament on Thursday.