South Africa’s REIPPPP second window projects achieve financial closure


    South Africa's REIPPPP second window projects achieve financial closure

    The renewable energy projects awarded in the second window of the Renewable Energy Independent Power Producer Procurement Programme have reached the financial closure and will sign the Power Procurement Agreement, Direct Agreements, Implementation Agreements and Connection Agreements.
    The list of preferred bidders for Window 2 was released last May 2012, where the 50 MW parabolic trough Bokpoort CSP plant promoted by Saudi’s ACWA and South Africa’s Solafrica was awarded. The plant cost is ZAR 4,483 million (USD 494.88 million) with a price per kWh generated of ZAR 251 c/kWh ( USD 27.71 c/kWh), slightly lower that window 1 average price of ZAR 269 c/kWh (USD 29.70 c/kWh).
    Two Concentrated Solar Power plants were awarded in the first round, the Khi Solar One and the Kaxu Solar One, both promoted by Abengoa in consortium with IDC and BBBEE.
    Third window, with a deadline for bids submission set to August 19, 2013, will not allocate more CSP plants. According to CSP Today, it’s expected to allocate 400 MW between 2017 and 2020 at a pace of 100 MW each year. However, Engineering News reports that yearly target of 1000 MW -comprising all renewable energy projects- could be adjusted once the new Integrated Resource Plan for electricity is published later this year. An Integrated Energy Plan to be presented to Cabinet this month will be the roadmap for electricity to be included in the IRP.
    The second window allocated 1044 MW comprising 562 MW of wind, 417 MW of solar PV, 14 MW of mini-hydro projects and 50 MW of CSP.