HomeIndustry SectorsGenerationRisk mitigation IPP procurement programme locks in three bidders

Risk mitigation IPP procurement programme locks in three bidders

Yesterday, South Africa’s energy department announced the appointment of three additional preferred bidders under the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPP).

The announcement follows the completion of value for money negotiations, as indicated by the Department of Mineral Resources and Energy’s (DMRE) Minister Gwede Mantashe during the announcement of the other eight Preferred Bidders on 18 March 2021.

The additional Preferred Bidders announced by the Department are as follows:

Risk mitigation programme closer to 2GW goal

The three additional Preferred Bidder projects will add a total of 150MW to the national grid, bringing the total megawatts procured under the RMIPPPP to 1995.76MW. 

These projects will be required to achieve Financial Close by the end of September 2021.

The RMIPPPP bid window was released to the market in August 2020, following the promulgation of the Ministerial Determination of 2,000MW, with concurrence from NERSA.

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The main objective of the bid window is to meet the supply gap indicated in the Integrated Resource Plan (IRP2019), and reduce the extensive utilisation of expensive diesel-based peaking electrical generators in the medium to long term.

The Request for Proposals (RFP) for the RMIPPPP allowed for a portfolio approach whereby a developer could bid a portfolio of facilities that will constitute one project. This approach has attracted a combination of technologies and facilities at the same or different geographical locations.