Second Round of South Africa's Renewables Program to Add 1,044 Megawatts

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Nineteen projects have reached financial closure in the second bid window for South Africa's Renewable Energy Independent Power Producer Procurement Program (REIPPPP). The successful bids represent a total of 1,044 megawatts (MW) of installed capacity and cover wind, solar and mini-hydro technologies.

Under the first bid window, 28 projects totaling 1,416 MW were given the go-ahead. Together with the second bid, this means that 47 renewable energy projects are being implemented, totaling 2,460 MW and a direct investment of $5.2 billion.

The 19 new projects consist of nine solar photovoltaic projects, totaling 417.1 MW; seven wind projects at 562.6 MW; two mini-hydro projects at 28.6 MW; and a 50-MW concentrating solar (CSP) project.

The average price offered by the solar PV developers in the second round fell in South African currency from 268 cents/kWh (kilowatt hour) to 165 cents/kWh. Wind prices also fell from 114 cents/kWh to 89 cents/kWh, and CSP from 268 cents/kWh to 251 cents/kWh. Direct investment in the second round should be more than $3.1 billion, with international investors from North America, Europe and Asia.

The deadline for the third bid window submissions is August 19, with preferred bidders to be named by October 29. If the current schedule is followed, power purchase, connection, and direct and implementation agreements should be finalized on July 30, 2014.

Reports say that the allocations in the third round will include onshore wind (653 MW), solar PV (401 MW), small hydropower (60 MW), landfill (25 MW), and 12.5 MW each for biogas and biomass. The 1,165 MW in the third round will complete the 3,725 MW planned in the REIPPPP, but already a further round of 3,200 MW is planned and more will come down the pipeline in the future. The intention is to add about 1,000 MW of renewables per year, over a sustained period.

For related information, see February 8, 2013, article - South Africa's Renewables Program Rolls Out 136 Megawatt Jeffreys Bay Windfarm.

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