S. Africa Generates Additional 7,000 MW Via Renewable Independent Power Producer Program

Mineral Resources and Energy Minister Gwede Mantashe on Tuesday said that the government has gained additional 7,000 megawatts (MW) capacity onto the grid via its Renewable Independent Power Producer Program (REIPPP).

Speaking during the debate on the State of the Nation Address (SONA) held in Cape Town, the minister said that REIPPP will help to bring additional megawatts to the power grid through private sector investment in renewable energy such as wind, biomass, and small hydro.

Since the program was launched in 2011, the minister said that the Department of Mineral Resources and Energy (DMRE) has generated 13,266 MW from 140 Independent Power Producers (IPPs), which are based on renewable energy sources like diesel and battery energy storage.

"From these capacities, 7,362MW was from 95 IPPs, who are currently connected to the grid and supplying the much-needed electricity. A combination of [renewables and base load] is required to deal with the challenges facing us," Mantashe said, according to SA News.

"The remaining 45 IPPs, with a combined capacity of 5 904MW, are either in construction or preparing to reach commercial close," he added, noting that the National Energy Regulator of South Africa (NERSA) has concurred with Electricity Minister Kgosientsho Ramokgopa that 2,500 MW of nuclear capacity has to be connected.

Mantashe highlighted that South Africa has the potential to become a global leader when it comes to the energy transition. He revealed that the current administration has generated 5,939 MW from 46 IPPS, while 150 MW is already connected to the grid, and by September, an additional 1,587 MW are expected.

The minister pointed out that in the last 30 years of democracy in South Africa, the government has worked a lot to ensure transformation in the mining industry.

Following research held two years ago, the government "discovered that at the nine major mining companies that we studied, each one of them didn't have less than 50% of the management structure being black," he said.

"We did see that in procurement initiatives created, a lot of business people who are not necessarily seen as part of the mining sector but who have developed on the back of mining. If you talk coal, only one major company is white, the majority of them are black," the minister added.

Mantashe also said that the government has launched an exploration fund, which will help to find more mines in the country.