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16 April 2014

Additional bidders for REIPPP window 3 and base load procurement programme in SA

South Africa’s department of energy (DoE) has announced that it will follow due procurement process to include additional bidders under the renewable energy independent power producer programme (REIPPP) bid window three .At the end of 2013, South Africa’s DoE announced preferred bidders under window three of the REIPPP. During that announcement it indicated it would consider allocating additional megawatts due to the fact that the prices offered by the bidders are competitive, and reflect a downward trend compared to the prices in windows one and two.

The DoE also said that submissions for window four of the REIPPP, which entails the procurement of 1000 megawatts, is on track to close in August 2014.

In line with the DoE programme, and as set out in section 34 of the Electricity Regulation Act, the Ben Martins, the minister of energy has determined that the economy requires additional generation capacity in the form of cogeneration and coal generation. In this regard, the DoE says that it intends to start a process to procure 800 MW of cogeneration to be followed in May 2014 by process to procure 2,500 megawatts of coal-fired generation.

This determination is made under the IPP programme and will complement the capacity that is generated by the IPPs licensed in windows one, two and three.

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