South Africa Announces Tender for 5 GW Renewable Capacity under BW7

South Africa Announces Tender for 5 GW Renewable Capacity under BW7

The Department of Mineral Resources and Energy (DMRE) of South Africa has released a tender under the seventh bid window (BW7) under its Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). The tender seeks bids for the development of 5 GW of renewable capacity, entailing 3.2 GW of wind and 1.8 GW of solar capacity.

The last day for submission of bids is April 30, 2024.

BW7

BW7 is the first bidding round introduced in line with the Ministerial Determination published by the Government of South Africa back in December last year. The Ministerial Determination sets sights on procuring 14,771 MW of new generation and storage capacity. This includes 3,940 MW of solar capacity 9,600 MW of wind energy while the remaining 1,231 MW is for battery energy storage.

BW6, or the sixth bidding window remained largely unsubscribed, having tendered just 1 GW of solar capacity.  The DMRE stated that BW7 projects must kick off operations in shorter timelines, especially since the continent faces an acute power crisis.

The South African Cabinet has also greenlighted a new Integrated Resource Plan. It outlines South Africa’s future energy mix.

Earlier during the year, in a first such tender for the country on African continent, South Africa issued its first large-scale tender aimed at procuring renewable energy. With a capacity of 3,740 MW, this is the continent’s biggest program on renewable energy.  This was the release of the first phase of the RFP (Request for Proposal).

Coal accounts for the primary source of energy for Africa, claiming 80 per cent of the energy share. It is globally the fifth-largest exporter of coal. However, to reverse this trend, South Africa is now focusing on Just Energy Transition (JET). The first phase of the JET Investment Plan is seeing mobilisation from the United States, the United Kingdom, France, Germany, and the European Union with an initial $8.5 billion. This makes up a part of a long-term Just Energy Transition Partnership (JETP) that was signed back in 2021.