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 (91 MW) – Scatec;
- Grootfontein PV 2 (91 MW) – Scatec;
- Grootfontein PV 3 (91 MW) – Scatec;
- 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
The Grootfontein projects, which are being developed by Scatec of Norway, have reached financial close. The projects have a combined capacity of 273 MW and a combined investment value of R5.1-billion.
Scatec CEO Terje Pilskog has described the transaction as “a landmark”, noting that the projects are the first solar PV projects from BW5 to have reached financial close.
“We are now looking forward to starting construction next year and achieving commercial operation in 2025,” he has added.
The solar power plants will be the first Scatec assets in the Western Cape, and will be financed using equity from the owners and R4.5-billion of nonrecourse project finance debt provided by Standard Bank.
Scatec will own 51% of the equity in the project, with black economic-empowerment company H1 Holdings owning 46.5% and the Grootfontein Local Community Trust the 2.5% balance.
Scatec will be the engineering, procurement and construction provider, and will also be responsible for operation, maintenance and asset management.
Construction is expected to begin in the first quarter of 2024.
Key Contracts, Suppliers and Consultants
Scatec Solar (engineering, procurement and constuction 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.