SA takes another step towards renewable energy
Minister signs renewable energy power procurement programme deal set to boost electricity generation
South Africa took another step closer towards moving to renewable energy with the signing of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) tender this week. The REIPPPP is a tender procedure that was launched by the Department of Mineral Resources and Energy to engage the private sector investment into grid connected renewable energy. It has the goal of bringing more megawatts to the country’s electricity system by using private sector investments in wind, solar energy, small hydro and other renewable energy resources.
The programme has already taken initiative in Eastern Cape and so far it has proven a success, with 18 132 jobs being created and one solar energy farm presented to the province.
As a result the province has seen a reduction in load-shedding because of the additional boost to its energy security.
The Integrated Resource Plan (IRP 2019) with relevant Ministerial Determinations is responsible for carrying out the role of the procurement to bidders under the Independent Power Producer Procurement Programme (IPPPP).
The request for bids under Bid Window 5 of
the REIPPPP was launched on 12 April 2021. The successful bidders were announced on 28 October during the same year.
On Thursday Minister of Mineral Resources and Energy Gwede Mantashe hosted a project agreement signing ceremony with the three chosen bidders in Centurion, Gauteng.
Mantashe added that the department is aiming to release Bid Window 6 by not later than the end of January 2022.
“Bid Window 6 will also include 1 600MW of onshore wind and 1 000MW of solar PV in accordance with #IRP2019,” he said. “With this bid intact, the department aims for the project to deliver power within 24 months from the signing of the project agreements, and also 2 600MW of renewable energy to be generated,” he said.
Mantashe said the government must invest in transmission lines in the Northern Cape so that it can generate energy from the wind and sun in that province. “We must work together to develop the country,” he said.
Most companies aligned with the REIPPPP use solar energy to generate electricity. Solar energy is a low-cost source of energy compared to other nonrenewable energy resources in South Africa. The introduction of solar power has created jobs within the country and pushed the economy in a positive direction.
The National Energy Regulator (NERSA) is one of three energy regulators in South Africa that establishes the framework for energy regulation. As from 1 January 2016 Section 12B of the Income
Tax Act (South Africa) no. 58 of 1962 reformed the three year depreciation allowance on renewable energy to an even quicker depreciation allowance of one year.
The reform came because the government wants to accelerate the development of smaller solar PV energy projects, as these have less environmental impacts on the air and water, and with the rise of energy problems in South Africa the department was required to act.
Since solar energy is the way forward for South Africa, the United Nations Environment Programme has made positive remarks about the transition to solar energy for the country.
According to the United Nations Environment Programme (UNEP), the promotion of solar energy is a high potential mitigation opportunity that could deliver emission reductions.
This is because it provides technological advancements and substantial benefits for rural economies in terms of employment, off-grid access to energy and expanded energy source.
It can enhance energy security, reduce air pollution and improve public health according to the UNEP, which aims to fully modernise energy by 2030 with solar energy by partnering with more than 80 countries, including South Africa, and a number of international private sectors to achieve its goal.