South Africa greenlights R4.9-billion of independent solar power

The Department of Mineral Resources and Energy (DMRE) has announced that two solar PV projects that will generate 360MW have reached financial close.

The department said the two projects will attract a total investment of R4.9 billion and go live in 2026.

This was part of the sixth bid window of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

One project, the Virginia Solar Park, is located in the Lejweleputswa District and is the seventh renewable energy project in the Free State.

The other is Doornhoek PV, situated in the Dr Kenneth Kaunda district municipality in the North West. It is the sixth renewable energy project in the province.

“The two solar PV projects will together contribute an additional 360MW to the national grid once construction is completed,” the DMRE said in a statement.

Red Rocket’s Virginia Solar Park will contribute 240MW of this total, while AMEA Power’s Doornhoek PV will add 120MW.

It added that construction at the sites is expected to be completed within two years, with the new generation capacity expected to come online in May 2026.

“These projects, developed by international investors in partnership with local players, will attract a total investment of R4.9 billion,” the department said.

In addition, the two renewable energy projects have created over 2,000 job opportunities, including 859 during construction and 1,175 once the sites are operational.

The companies behind the projects have also committed R389 million to skill, supplier, enterprise, and socio-economic development initiatives over 20 years.

The REIPPPP Bid Window 6 opened for proposals and applications in April 2022, and six preferred bidders were announced in December of the same year.

The remaining four projects are finalising their funding but face challenges such as acquiring grid access and interdependencies between projects across bid windows.

“The Department and IPP Office are working tirelessly with Eskom to resolve these challenges, to ensure that all projects can reach Commercial Close and start construction,” the DMRE said.

“The Department wishes to congratulate the two Preferred Bidders on achieving this major milestone.”

To date, the Independent Power Producer Procurement Programme has added 95 IPP projects to its roster, adding 7,336MW of energy from renewable sources and diesel generators to the grid.