Mineral Resources and Energy Minister, Gwede Mantashe, made the announcement regarding the new clean energy projects on Thursday. He also named the 25 preferred bidders that were selected in the fifth round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
These clean energy projects can take up to 36 months before producing results
The aim of the clean energy projects is to provide 2 583 MW of contracted capacity to the grid – a boost of ± 4.5% on current capacity.
“More investment in grid infrastructure is a critical requirement to ensure participation by cheaper renewable projects in future,” Mantashe said.
Mantashe also cautioned that projects of this kind can typically take up to 36 months before they can contribute power to the grid. And the first projects are not expected to become live until April 2024 at the earliest.
Commitments made towards socioeconomic development
The 25 preferred bidders’ projects are also expected to create around 13 900 job opportunities. And another R2.7 billion have further been committed by the bidders towards socioeconomic development over the 20-year lifetime of the projects.
According to the DMRE, the appointed bidders will be expected to finalise regulatory approvals and reach the commercial close stage in around four months’ time. This includes obtaining approved generation licences from NERSA.