South Africa

South Africa

South Africa to sign off second REIPPP tender

SOUTH AFRICA: The South African government is set to sign off on seven wind power projects totalling 563MW selected in the second round of its renewable energy independent power producer procurement programme (REIPPP) today.

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These projects are due to come online in 2014. The Department of Energy (DoE) and state utility Eskom will sign the power purchase agreements, implementation and financial agreements with the developers, allowing the projects to proceed to financial close.

Signature was originally scheduled for December, but was delayed by the DoE because of internal problems. At the same time, it is expected that the minister will release the request for proposals for the third bidding round.

The wind power capacity available for tender in the third round was originally 653MW, but last year the government announced it would seek an additional 1.47GW of wind power. The industry is hoping for further clarification tomorrow.

Last year, the first REIPPP round was closed, bringing financial closure for 634MW of projects.

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