Dear valued Stakeholder,
As 2020 draws to a close and we look forward to quality time with family and friends, we reflect on an extraordinary year that has not only tested our resolve but has also opened up multiple new opportunities in the energy sector. The COVID-19 pandemic changed aspects of our lives that may never be the same again. It has been a period of profound economic change, and the challenges that behest us as a country are far reaching.
While life as we know came to a standstill in March 2020, the IPP Office and its stakeholders, worked hard behind our screens to start preparations for the much anticipated Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP). In August 2020 we released the Request for Proposal (RFP) for the RMIPPPP to the market. The RMIPPPP is designed to procure the target of 2 000 MW of new generation capacity from different types of dispatchable electrical power generation technologies. There has been resounding interest from the market in the RMIPPPP bid window, with Bids expected to be received on 22 December 2020, and evaluation to conclude early February 2021.
Another significant milestone in 2020, was the announcement by the Minister of Energy, Mr Gwede Mantashe on 25 September 2020, of a further 11 813 MW of additional capacity to be procured from Independent Power Producers (IPPs) from Renewable Energy, Gas, Storage and Coal technology sources over the next five to eight years. The IPP Office team is already hard at work preparing the RFP of the next Renewable Energy Bid Window 5 for release to the market by end of January 2021.
We also made significant progress in moving forward other initiatives to secure affordable electricity for the consumers of South Africa. On 14 December 2020, DMRE announced the signing of the first Re-Financing agreement with one of the IPP projects procured under the initial REIPPPP Bid Window 1-3.5 rounds, the Bokpoort CSP Project, based on a Re-Financing Protocol that was extensively consulted with IPPs and Lenders. This now paves the way for other IPP projects to come forward with their Re-Financing proposals, which will ultimately contribute to a reduction in the wholesale price of electricity.
I would like to express my deep gratitude and appreciation for the employees of the IPP Office. This was a year that clearly demonstrated our team’s resilience and our ability to deliver on our important mandate for South Africa. I hope you are as proud of them as I am about our achievements and energised by opportunities that lay ahead.
We will be closing for a well-deserved break from Wednesday 23 December 2020 to 7 January 2021 (inclusive).
To each and every one of our valued stakeholders, we thank you for your continued support and confidence in the Independent Power Producer Procurement Programme (IPPPP) during these trying times. If this global pandemic has taught us anything, it is that we all need each other, and how truly united we can be as a nation.
On behalf of the IPP Office team, we wish you and yours a safe and restful holiday season, and a New Year filled with health, happiness and prosperity. We look forward to working together with renewed vigour in 2021!
Tshifhiwa Bernard Magoro
Head of IPP Office