Name of the Project
Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) – Bid Window (BW) 5.
Location
South Africa.
Project Owner/s
Department of Mineral Resources and Energy (DMRE).
Project Description
Mineral Resources and Energy Minister Gwede Mantashe announced the names of 25 wind and solar preferred bidders on October 27, 2021.
The projects were procured under BW5 of the REIPPPP, which was officially launched in April 2021.
The weighted average price across wind and solar photovoltaic (PV) projects was 47.3c/kWh, the lowest yet to be achieved in South Africa.
The solar PV projects had a weighted average price of 42.9c/kWh, while that of the wind projects was 49.5c/kWh.
The bidders are expected to build 2 583 MW of new generating assets, about 1 600 MW for wind and 1 000 MW under solar.
The wind projects include:
- Coleskop Wind Energy Facility (140 MW) – EDF Renewables;
- San Kraal Wind Energy Facility (140 MW) – EDF Renewables;
- Phezukomoya Wind Energy Facility (140 MW) – EDF Renewables;
- Brandvalley Wind Farm (140 MW) – Red Rocket South Africa;
- Rietkloof Wind Farm (140 MW) – Red Rocket South Africa;
- Wolf Wind Farm (84 MW) – Red Rocket South Africa;
- Beaufort West Wind Facility (140 MW) – Mainstream Renewable Power Projects (Ikamva);
- Trakas Wind Facility (140 MW) – Mainstream Renewable Power Projects (Ikamva);
- Sutherland Wind Facility (140 MW) – Mainstream Renewable Power Projects (Ikamva);
- Rietrug Wind Facility (140 MW) – Mainstream Renewable Power Projects (Ikamva);
- Waaihoek Wind Facility (140 MW) – Mainstream Renewable Power Projects (Ikamva); and
- Dwarsrug Wind Facility (124 MW) – Mainstream Renewable Power Projects (Ikamva).
The Solar PV projects include:
- Grootfontein PV 1;
- Grootfontein PV 2;
- Grootfontein PV 3;
- Grootspruit Solar PV Project;
- Graspan Solar PV Project;
- Sannaspos Solar PV Project;
- Du Plessis Dam Solar PV 1;
- Kentani Solar Facility (75 MW) – Mainstream Renewable Power Projects (Ikamva);
- Klipfontein Solar Facility (75 MW) – Mainstream Renewable Power Projects (Ikamva);
- Klipfontein 2 Solar Facility (75 MW) – Mainstream Renewable Power Projects (Ikamva);
- Leliehoek Solar Facility (75 MW) – Mainstream Renewable Power Projects (Ikamva);
- Braklaagte Solar Facility (75 MW) – Mainstream Renewable Power Projects (Ikamva); and
- Sonoblomo Solar Facility (75 MW) – Mainstream Renewable Power Projects (Ikamva).
Potential Job Creation
Not stated.
Capital Expenditure
The projects have a combined investment value of R50-billion.
Planned Start/End Date
The projects are expected to be introduced into the country’s power-stressed grid within the coming 36 months.
Latest Developments
Mineral Resources and Energy Minister Gwede Mantashe announced on November 10 that three more wind projects had signed project agreements under the much-delayed BW5 of the REIPPPP. Mantashe also confirmed that more BW5 projects would be signed in the coming weeks.
The three projects, to be built by Red Rocket South Africa, have a combined investment value of R9.3-billion and a combined nameplate capacity of 364 MW.
The projects are the 140 MW Brandvalley Wind Farm and the 140 MW Rietkloof Wind Farm, near Laingsburg, in the Western Cape, and the 84 MW Wolf Wind Farm, near Jansenville, in the Eastern Cape.
The Red Rocket projects have 60 days to conclude all obligations and conditions precedent in the implementation agreement to start drawing down on their lending agreements and start construction.
Once the projects have reached financial close, the construction timeline is expected to be 24 months.
On September 22, the first three BW5 wind projects, which are being developed by EDF and have a combined capacity of 420 MW and a combined investment value of R11-billion, signed their project agreements.
Two of the EDF projects – Phezukomoya and San Kraal – reached commercial close on November 9, with financial close expected shortly. The two wind farms are expected to be commissioned between mid-2024 and the beginning of 2025.
It is expected that EDF’s Coleskop wind project will achieve financial close in January 2023.
The combined investment value of the three projects is estimated at R11.5-billion.
Each project, including Coleskop, will comprise 26 wind turbines, with a height of 124 m and a blade length of 83 m.
Key Contracts, Suppliers and Consultants
Scatec Solar (EPC provider, operation and maintenance, and management services for three solar projects); Mainstream Renewable Power Projects (six solar projects and six wind projects); Engie (three solar projects); Mulilo (one solar project) and EDF Renewables (three solar projects).
Contact Details for Project Information
DMRE, Natie Shabangu, email natie.shabangu@dmre.gov.za; or Thandiwe Maimane, email thandiwe.maimane@dmre.gov.za.