The Department of Mineral Resources and Energy announced the significant progress of South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) Bid Window 6, with the commercial close of the first two projects on April 30, 2024.
The two projects, Virginia Solar Park in the Free State Province and Doornhoek PV in the North West Province mark a combined addition of 360MW to the national grid upon completion, expected around May 2026. Developed through partnerships between international investors and local entities, these projects represent a total investment of R4.9 billion, with South African entity participation at 49% for each project.
In addressing South Africa’s economic challenges, the projects commit to generating 2,034 job opportunities, with 859 jobs during construction and 1,175 in operations. Additionally, R389 million will be allocated to Skills Development, Supplier Development, Enterprise Development, and Socio-Economic Development initiatives over their 20-year lifespan.
The REIPPPP, a cornerstone of South Africa’s Independent Power Producer Procurement Programme, has facilitated the development of 95 projects contributing 7,336MW to the national grid, including renewable and diesel generators. Bid Window 6, launched in April 2022, aims to add 11,318MW to the grid, with six Preferred Bidders announced for Solar PV projects in December 2022.
While four Preferred Bidders are finalizing preparations for Commercial Close, challenges such as grid access and project inter-dependencies across bid windows persist. The Department, IPP Office, and Eskom are working collaboratively to overcome these hurdles and ensure all projects can commence construction.
The Department congratulates the two Preferred Bidders on this significant milestone, marking a step forward in South Africa’s renewable energy journey.
