Minister Jeff Radebe announces next round of he Renewable Energy IPP programme
A new bid round i.e. BW5 of the Renewable Energy IPP programme will be launched in November 2018 and it is estimated to be 1800MW of similar technologies as in the Expedited Bid Window. This could bring another R40 to R50 billion of investment to the Country.
There will be specific reference and requirements for women-owned business participation and special opportunities for the youth. It is also the intension to direct the socio-economic and enterprise development spend of the IPP programme in a much more coordinated way, which will take into account the different needs of the communities where the projects are and which will allow the impact to be measured.
Gas: It is important to note that the imported Liquefied Natural Gas as well as natural gas to power programmes are still a very high priority. As we have indicated before we are not only looking at gas to power but gas as part of the energy mix in South Africa. Southern Africa has huge natural gas reserves in Tanzania, Mozambique and within South Africa, Zimbabwe and Botswana having gas in the form of coalbed methane. Furthermore, South Africa has potential shale gas. Both the SADC Energy Minister and water and Sanitation Ministers will hold a one day workshop on regional gas development. This, we hope is the beginning of a decisive trajectory that provides sufficient focus on the utilization of gas in the region. I am also planning to visit Mozambique very soon to engage with our neighbour as to the possibilities of a regional approach for the development of the natural resources in our respective countries, as well as to ensure a close co- ordination and relationship with our neighbouring countries. It is important to note that a gas strategy will also be available with the release of the IRP and for consultation with the market during July/August of 2018.
Coal: Coal is still part of the energy-mix and we have procured two projects of 864MW of coal-fired power plants. It will bring another R40 billion of investment to the Country and at least 5 000 jobs during construction. The construction phase will be between 48 months to 60 months after signing before first electrons in the grid (not before 2022/23).