The REIPPP will be extended into a rolling procurement programme with an additional allocation of 1,470 MW for onshore wind by 2020
South African Department of Energy has announced that the South African Treasury has signed off on the PPAs for the first round wind projects (630 MW). Following several delays, the government confirmed on Monday that the framework is now in place for the first 28 wind and solar projects, identified as preferred bidders under South Africa's Renewable Energy Independent Power Producer Programme (REIPPP) in December 2011, to move to financial closure. The preferred bidders should be prepared to start signing the final agreements from November 5.
The signing of the power purchase, implementation and financial agreements will open the way for the construction of projects representing an investment value of around R47-billion for a total capacity of 1,415 MW for renewable energy.
In the first round, 632 MW were allocated to 18 solar photovoltaic (PV) projects, while 634 MW were designated for eight wind farms, and a further 150 MW to two concentrated solar power (CSP) projects. The projects are expected to become online during 2014.
South African Energy Minister Dipuo Peters also confirmed that the REIPPP will be extended into a rolling procurement programme, with an additional allocation of 3,200 MW to be added for projects to be developed by 2020, divided as follows: 1,470 MW for onshore wind, 400 MW for CSP, 1,075 MW for solar PV, 47.5 MW for biomass, 47.5 MW for biogas, 60 MW for small-scale hydro, and 100 MW for small renewables projects.
Further details will be published in an upcoming Government Gazette in November.