The announcement, made by the Minister of Mineral Resources and Energy, Gwede Mantashe, has been welcomed by the South African Photovoltaic Industry Association (SAPVIA).
The bid window is seeking to procure a total of 2,600 Megawatts of which 975MW has been preferred from solar PV projects in the Northern Cape, Western Cape and Free State provinces.
Solar PV projects have a weighted average of R428.79/MWh and the lowest bid of R374.79/MWh.
“We are delighted to see the announcement of BW5 preferred bidders and congratulate those members who have worked tirelessly to ensure solar PV is a key contributor to the country’s energy mix.
With the low tariffs and rapid build times, solar PV remains the technology of choice in meeting the country’s electricity requirements,” said Niveshen Govender, SAPVIA COO.
Through the REIPPPP key economic development targets continue to be achieved with increasing ownership and participation from Previously Disadvantaged South Africans.
SAPVIA is fully supportive of these objectives and continues to work with members and government to create an enabling environment that delivers local content during construction and operation of projects.
“We must acknowledge some of the ongoing challenges regarding local content requirements (amongst others) with respect to the Risk Mitigation IPP Procurement Programme (RMIPPPP) and we are engaging with government to develop a sustainable local solar PV manufacturing industry in South Africa.
“Consistent local demand is required if we are to build confidence and create local solar PV value chain in South Africa.
“Restarting renewable generation capacity is vital to this and we are pleased that the minister has responded to calls from industry to act quickly and proceed with BW6.
The solar PV sector stands ready to play our part in delivering energy security and powering South Africa’s economic recovery," says Govender.
With financial close expected in just four months, SAPVIA says look forward to much needed generation capacity on the network.
