Question NW1242 to the Minister of Mineral Resources and Energy
21 May 2021 - NW1242
Msimang, Prof CT to ask the Minister of Mineral Resources and Energy
Whether, given current challenges with energy supply and in light of current controversies and allegations of impropriety in the procurement of emergency energy supply through foreign floating power ships, he has alternative plans to ensure an uninterrupted and reliable supply of electricity to support post COVID-19 economic recovery; if not, why not; if so, what are the relevant details?
Reply:
The Departments response to the current energy supply challenges consist of a number of interventions including procurement under the RIMPPPP (commonly known as emergency power). The interventions by the Department are follows:
- We have amended regulations to enable municipalities to build or procure power from IPPs.
- We have amended of Schedule 2 of ERA and therefore making exempting certain categories of generation for own use from the requirements to hold apply for a license.
- We are working with IPPs and Eskom to ensure that projects signed under bid-window of renewable energy are completed as soon as possible. 1 200 megawatts of the 2 200 megawatts has already been connected to the grid. The remaining capacity is expected to be connected to the grid by not later than December 2021
- We are procuring power from existing private generators through short-term contracts. Eskom is finalising the procurement of 128 megawatts and the Department is finalising an offer to purchase additional power from existing renewable energy IPPs.
- We are proceeding with the procurement of 1 995 megawatts of power under the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP). Preferred bidders have been given until end of July 2020 to reach financial close. The Department is planning to conclude the signing of Power Purchase Agreements shortly after that.
- We have issued Request for Proposal to procure 2 600 megawatts from renewable energy (Bid window 5)
- We will be issuing additional Requests for Proposal for 9 213 megawatts from renewables, coal, gas, and battery storage. These will be done between now and March 2022.