8 Solar PV Projects With 1,760MW Capacity Chosen For Renewable Energy Bid Windows

Eight solar PV projects, with a total capacity of 1,760 megawatts, have been selected as preferred bidders under the Renewable Energy Independent Power Producer Procurement Program (REIPPPP) Bid Window 7.

Aside from this, eight more projects have been chosen through the Battery Energy Storage Independent Power Producer Procurement Program (BESIPPPP) Bid Window 2, as per the Department of Electricity and Energy's announcement on Monday, SA News reported.

These solar projects were selected from 48 bid responses.

"Total investments from the eight Solar PV Preferred Bidders in this Bid Window is R31.4 billion. South African Equity Participation of 49% across all the Preferred Bidders and average Black Economic Empowerment (BEE) participation of 46% have been committed in this Bid Window," the department said.

The projects are expected to create around 6,971 job opportunities, measured in job years. These projects will allocate 38.8% of their total costs to local content, which amounts to R7.8 billion during construction and R2.4 billion during operation and maintenance.

The preferred bidders have committed to investing R3 billion in Black Enterprise Procurement, R2 billion in Broad-Based Black Economic Empowerment (B-BBEE) Procurement for Qualifying Small Enterprises (QSEs) and Exempt Micro Enterprises (EMEs), and an additional R333 million in B-BBEE Procurement specifically for black women.

The bidders have pledged to spend R73 million on Enterprise Development, R129 million on Socio-Economic Development, and R138 million on Skills Development over the life of the projects.

The department received 31 bid responses for BESIPPPP Bid Window 2, with the eight selected bidders offering a combined investment of about R12.8 billion.

The preferred bidders have committed to 41% black shareholding in the IPP Project Companies, up to 27% shareholding by construction contractors, and up to 36% by operations contractors.

They have also committed to creating 1,570 job opportunities for South African citizens, measured in job years, during construction and operations. The projects will allocate 31% of their total costs to local content, amounting to R2.6 billion during construction and R2.5 billion during operation and maintenance.

Moreover, R1.8 billion will be invested in Black Enterprise Procurement, R1.4 billion in B-BBEE Procurement for Qualifying Small Enterprises and Exempt Micro Enterprises, and R659 million specifically for B-BBEE Procurement aimed at black women.

The preferred bidders have also committed to spending R316 million on supplier development, skills development, bursaries for black students, skills training for black disabled people, and socio-economic development initiatives throughout the projects' lifetimes.