South Africa Announces Tender For 5 GW Wind and Solar Projects

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  • The last day to submit the bids is April 30, 2024
  • Bidders have to apply for cost estimate letters (CEL) at least 90 days before bid submission

South Africa’s Department of Mineral Resources and Energy (DMRE) has recently announced a tender under the Renewable Energy Independent Power Producers Procurement Program (Phase-VII) to develop 1.8 GW solar and 3.2 GW wind projects in the country.

To get timely processing, bidders have to apply for cost estimate letters (CEL) at least 90 days before bid submission. This duration will be enough to handle all CEL applications.

The eligibility criteria prioritise fully developed projects that can be constructed and connected to the national grid within 24 months after the commercial close.

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In addition to generating energy, the program also requires the provision and payment of ancillary services. These services are aimed at supporting the reliable and secure operation of the buyer’s transmission system, overseen by its system operator.

This bid is in alignment with the Third Ministerial Determination, which received approval from the National Energy Regulator of South Africa in December 2022. The overarching objective is to secure 14,771 MW of new generation capacity, encompassing 3,940 MW of solar, 9,600 MW of wind, and 1,231 MW of battery energy storage capacity.

The last day to submit the bids is April 30, 2024. Bids will be opened on May 3. Bidders must submit a non-refundable fee of R25,000 (~$1,351) per project.

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