South Africa has a high level of Renewable Energy potential and presently has in place a target of 10 000 GWh of Renewable Energy. The Minister has determined that 3 725 megawatts (MW) to be generated from Renewable Energy sources is required to ensure the continued uninterrupted supply of electricity. This 3 725 MW is broadly in accordance with the capacity allocated to Renewable Energy generation in IRP 2010-2030. The IPP Procurement Programme was designed so as to contribute towards the target of 3 725 megawatts and towards socio-economic and environmentally sustainable growth, and to start and stimulate the renewable industry in South Africa. The IPP Procurement Programme was launched by the Department in August 2011.
In the Determination, the Minister allocated 100 MW of the 3725 MW to the procurement of small projects which individually have a maximum contracted capacity of 5 MW. The projects with a generation capacity of not less than 1MW and not more than 5MW utilising the following technologies shall be considered as qualifying technologies for selection under this Small Projects IPP Procurement Programme: