Decarbonising the South African economy starts with the energy sector. The South African government has understood this by committing to the implementation of the Renewable Energy Independent Power Producer Procurement Programme (REIPPP). The 5th round of the programme closed on 16th August, 2021 with 102 bids from IPPs.
For the 5th round of REIPPP, which was launched in March 2021, the South African Department of Mineral Resources and Energy expects 1000 megawatt of solar power to be built, compared to 1600 megawatt of new wind power capacity. Of the IPP proposals, 63 are solar PV plants, and the rest (39) are onshore wind farms. The South African government plans to unveil the successful proposals in October or November This Year.
This is expected to accelerate with the closing of funding for the individual projects set for February or March 2022. Successful IPPs will then have 24 months to begin commercial operation of their facilities, which will be connected to the state-owned utility Eskom’s grid.
Despite the delays, recent phases of REIPPP have been very successful with the construction of wind and solar farms in the Rainbow Nation. In the 4th cycle of the programme, many renewable energy plants have been built, mainly in the Northern Cape. The South African government’s initiative is helping to diversify its electricity mix. According to Power Africa, Nelson Mandela’s country has an installed capacity of 58,095 MWp (in year 2018), of which 48,380 megawatt is coal-fired. Hydroelectricity comes in 2nd place with 3,485 megawatt of installed capacity, 2,323 megawatt for solar, and the same for wind.