South Africa picks preferred bidders under 2-GW power procurement

Dyason's Klip 1 solar park in Upington, South Africa. Image by Scatec Solar (

March 22 (Renewables Now) - South Africa announced on Friday the preferred bidders in a mixed tender looking to procure 2 GW of risk-mitigation capacity from a number of sources, including renewables.

The Department of Mineral Resources and Energy (DMRE) has selected eight preferred bids for a total of 1,845 MW under the Risk Mitigation IPP Procurement Programme (RMIPPPP) that was released to the market in August 2020. The goal of the scheme is to alleviate power supply constraints and lower the use of diesel-based peaking electrical generators in the medium to long term.

The preferred bidders are: ACWA Power Project DAO; Karpowership SA Coega; Karpowership SA Richards Bay; Karpowership SA Saldanha; Mulilo Total Coega; Mulilo Total Hydra Storage; Oya Energy Hybrid Facility; and Umoyilanga Energy.

These parties have made proposals involving solar photovoltaic (PV) and wind power, as well as liquefied natural gas and battery storage. The offered prices range from ZAR 1,468 (USD 99.46/EUR 83.55) per MWh to ZAR 1,885/MWh, with a weighted average of ZAR 1,575/MWh.

The eight picks have to achieve financial close by no later than end-July 2021, which deadline is non-negotiable, and to produce first power as from August 2022.

The projects are expected to pour some ZAR 45 billion into the local economy and create around 3,800 jobs during the 18-month construction period plus an additional 13,500 during the 20-year term of the awarded power purchase agreements (PPAs).

The department has also chosen three eligible bids totalling 150 MW. They fall within the 2-GW capacity threshold in terms of the evaluation rankings but are subject to satisfactory value for money propositions, it noted.

In total, the government has received 28 bid responses to the RMIPPPP, with a potential contracted capacity of 5,117 MW.

Also last week, the government announced the launch of a 2.6-GW tender for wind and solar PV capacity under Bid Window 5 of the country’s Renewable Energy Independent Power Producer Procurement (REIPPP) programme.

(ZAR 1.0 = USD 0.678/EUR 0.569)

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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