South Africa to allocate additional renewable energy capacity under third round of REIPPP program

Scatec Solar energized the 75 MW Kalkbult PV power plant in September 2013. The plant is the first solar project to be commissioned through South Africa's renewable energy procurement program.

The South African Department of Energy (DOE) announced that it will allocate additional renewable energy capacity under the third round of South Africa’s Renewable Energy Independent Power Producer Programme (REIPPP). The DOE stressed that it will grant additional capacity due to the fact that the prices offered by project developers are competitive and »reflect a downward trend« compared to the prices in the first two rounds of the program. The DOE, however, has not revealed how much additional capacity will be allocated.
In October 2013, the DOE selected an initial 17 preferred bidders under the third round of the REIPPP program. The 17 bids consist of seven onshore wind projects totaling 787 MW, six PV projects totaling 450 MW, two CSP projects totaling 200 MW, one 18 MW landfill gas project and one 16.5 MW biomass project. Together, the projects represent 1,471.5 MW of renewable generation capacity. The DOE, which received 93 bids during the third submission round, said it could award preferred bidder status to additional onshore wind and PV projects but did not provide further details. The DOE has definitely ruled out only 18 bids. Projects selected through the third round must sign a power purchase agreement with public utility Eskom and reach financial close by July 30, 2014.
After delays, the REIPPP’s third bidding round opened in early May 2013. The round closed on August 19. Through the program, the DOE aims to procure a total of 6,925 MW of renewable energy capacity – up from its original goal of 3,725 MW – by 2020 through five procurement rounds. The DOE selected 28 projects totaling 1,415.5 MW in the first round of the REIPPP and 19 projects totaling 1,043.9 MW in the second round. First-round projects include 18 PV projects totaling 631.5 MW and two CSP projects totaling 150 MW. Second-round projects include nine PV projects totaling 417.1 MW and one 50 MW CSP project.

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