South Africa kicks off 2 GW tech-neutral tender to improve power supply

The South African Department of Mineral Resources and Energy (DMRE) is requesting proposals for the Risk Mitigation Independent Power Producers Procurement Programme (RMIPPPP). The tender is intended to procure 2 GW of capacity in response to the chronic short-term electricity supply gap that is affecting the country and its mining sector. Renewables are also entitled to compete.

The South African Department of Mineral Resources and Energy (DMRE) has launched a tech-neutral procurement of 2 GW of short-term risk-mitigation capacity, which will see solar among the competing technologies.

“The objective of the RMIPPPP is, not only to alleviate the current electricity supply constraints, but also, to reduce the utilisation of diesel-based peaking electrical generators,” the DMRE said. “The programme seeks to procure 2000 MW from a range of energy sources and technologies. Proposed technical solutions will have to be dispatchable and be able to provide a range of support services to the grid system operator.”

Power projects selected in the tender will have to begin commercial operations by the end of June 2022.

The DMRE had specified in December that the procured capacity should be connected to the grid in the shortest amount of time at the lowest possible cost. Although the 2 GW short-term risk mitigation capacity procurement is technology-neutral, it may be favorable to solar PV in particular, as it can be deployed within months to help address the supply gap, Chris Ahlfeldt, an energy specialist at Blue Horizon Energy Consulting Services, told pv magazine in March.

The tender is aimed at reducing South Africa’s dependence on Eskom for power supply. The troubled utility, which is currently unable to meet the country’s power demand due to financial and operational issues, recently began considering renewables for its plant portfolio. It launched a tender for the deployment of 80 MW/ 320 MWh of energy storage capacity at its Skaapvlei substation in the Western Cape region in August, and another tender to repurpose coal plants with low-carbon growth tech in April. This tender, together with another one for a small solar project issued in October, follows the recent publication of South Africa’s new Integrated Resource Plan (IRP), which aims for up to 6 GW of new large-scale solar by 2030 as well as up to 6 GW of distributed-generation capacity.

Meanwhile, South African businesses are resorting to solar and renewables to improve their power supply. These include Arcelormittal, South Africa-based chemicals producer Sasol and several mining companies.

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