Mantashe signs agreements for IPP procurement programme

Mineral Resources and Energy Minister Gwede Mantashe has signed project agreements with two preferred bidders appointed for risk mitigation independent power producer procurement programme (RMIPPPP).

Oya Energy will own and operate the 128 megawatts Oya Energy hybrid facility plant near Matjiesfontein, linking the Western Cape and Northern Cape.

The hybrid facility will offer dispatchable renewable energy for the RMIPPPP programme, as the project will utilise co-located wind turbines, solar PV arrays, lithium-ion batteries, and a hybrid controller that orchestrates all three technologies to provide dispatchable power to the grid when needed.

Oya will be one of the largest hybrid energy projects on the continent considering its technology mix and size.

Umoyilanga Energy Solar PV Park is a ground-mounted solar project which is being developed by EDF Renewables and co-owned by Perpetua Holdings and EDF Renewables on a 50/50% stake each.

The project construction is expected to commence in 2024 and subsequent to that, it will enter into commercial operation by 2025.

The projects investment totals R14.6-million, and the department stated that the funds will be a substantial input into the economy.

“These projects will contribute a total of 3 966 job opportunities in the construction and operation of these power plants.” said Mantashe.

“They will also contribute more than R610-million over their 20-year lifetime on skills development, supplier development, enterprise development, and socioeconomic development initiatives in communities within which they operate.”

The two projects, totaling 203MW, are both for hybrid renewable ventures, which consist of a combination of solar PV and onshore wind and battery storage technologies.


They will have up to December 2023 to finalise conditions precedent to conclude financial close and start with project construction, while the generation capacity is expected to go online from 2025 onwards.

So far, the department has signed RMIPPPP projects agreements with five companies out of 11 preferred bidders, which will add to a total of 353MW of dispatchable capacity to the national grid.

 

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