Question NW213 to the Minister of Mineral Resources and Energy
01 March 2023 - NW213
Herron, Mr BN to ask the Minister of Mineral Resources and Energy
With reference to the announcement by the President of the Republic, Mr M C Ramaphosa, in 2022 that the Renewable Independent Power Producer Programme (REIPPP) bid procurement window 6 would double the capacity it sought to procure from 2.6 GW to 5.2 GW, what (a) are the reasons that the bid window period was only three weeks long, post announcement, while requiring heavy documentation and registration for any potential bidder which resulted in only a fraction of the 5.2 GW capacity being procured, (b) was the most common shortcoming and/or failure on the bidders part to result in more than 60% being rejected, (c) changes are to be implemented in the bid procurement process with the intention of meeting the President’s commitment of 5.2 GW and (d) measures are currently taking place in the Northern Cape to tackle capacity constraints despite it being the best suited province for renewable expansion?
Reply:
a) In essence the RFP was already in the market, the adjustment was only to give effect to the President’s announcement which increase capacity from 2600MW to 4200MW in order to deal with loadshedding. The requirements were never changed. The bid could only secure 1000MW because of bid constrains .in the transmission bid which affected mainly the wind projects.
b) It should be noted that 56 bids were received and only 3 bids failed to meet the requirements of the RFP whilst the remaining 53 met the requirements and they were eligible for appointment as Preferred Bidders subject to competition outcomes and grid availability in the area where they are connecting. Majority of the projects were located in the Northern Cape, Western Cape and Eastern Cape where there was no grid as confirmed by Eskom.
c) There were no changes to the procurement process except the increase from 2600MW to 4200MW.
d) Eskom developed a plan for the construction of the required grid around the constrained areas including the Northern Cape. It is our understanding that the plan is being implemented but it will take time to build the required network.