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South Africa Seeks Proposals for Renewable Energy Projects

The Government of South Africa aims to buy 1,600MW of wind, and 1,000MW of solar power.

New capacity needed as soon as possible, the energy department says South Africa called for proposals from private producers to supply an additional 2,600 megawatts of renewable energy, part of a broader effort to reduce dependency on coal-fired plants and end power cuts.

Bids are being sought for 1,600 megawatts of onshore wind energy and 1,000 megawatts from solar plants, according to a posting on the Independent Power Producer Program website. Submissions are due on Aug. 11.

The opening of the sixth bid window comes after other programs to address energy shortages stalled. A previous round of renewable projects and a separate process to add emergency generation capacity that would bring an estimated 95 billion rand ($6.5 billion) of investment failed to reach financial close last month.

South Africa experienced record power outagess last year, with state-owned utility Eskom Holdings SOC Ltd. saying that as much as 6,000 megawatts of additional generation capacity will be needed to secure the system.

“Given the energy challenges the country is facing, the qualification criteria has been developed to promote the participation of projects that are fully developed and will be able to be constructed and connected to the national grid as soon as possible, but not later than 24 months post commercial close,” the energy department said.

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