Six solar projects have been approved as part of the seventh purchasing round of South Africa after the redistribution of unused wind capacity for offers for solar energy.
The government of South Africa has approved six solar projects under the Seventh bidding window of the Independent Power Producer Procurement Program of the country (REIPPPP).
The announcement is the result of the decision of the Department of Electricity and Energy (DEE) to re -assign unused wind capacity on the coast under the bidding window to Solar, after a first appointment of preferred bidder last December.
An update of Dee says that the six solar projects, each in the free state province, are covering 1,290 MW new capacity. Once operational, the projects will operate under 20-year-old electricity buy agreements.
The independent power producer Red Rocket South Africa, based in Cape Town, is mentioned as the preferred bidder for three of the projects. These include the 180 MW Dwaalboom 3 Solar Project, for a price of ZAR 499.99 ($ 28.55)/MWH, the 200 MW Florida Solar Park with a price of ZAR 506.89/MWH and the 210 MW Virginia 4 Solar Park at a price of ZAR 504.87/MWH.
Scatec Solar Africa PTY LTD is the preferred bidder for the other three projects, including the 240 MW Oslagte Solar 2 and 240 MWLaagte Solar 3 projects, both with prices from ZAR 509.02/MWH, in addition to the 220 MW Lion’s sprout Solar 1 with a price of ZAR 514.06/MWH.
SCATEC says that the three projects, called the crown city of PV cluster, will have an estimated total project costs of ZAR 13 billion, financed with a maximum of 90% non-recourse project debt and the remaining via owners’ equity.
It has published higher project capacities than the government department, with a list of the Oslagte projects on 293 MW each and the Lion sprout at 260 MW for a combined capacity of 846 MW.
Alberto Gambacorta, Scatec’s Executive VP and GM for Africa Benuiden The Sahara, said that Financial Close and the beginning of the construction are both planned for next year.
The newest update of Dee adds that it has mentioned another eight in accordance with bidders eligible for appointment to desired bidders, subject to where your money negotiations. Although names have not been announced, the Department has revealed that the bids will cover four solar and four wind projects.
Earlier this year, the South African government unveiled plans to use At least 3 GW from new renewable energy sources per year, increase to 5 GW in 2030. The country deployed 1.1 GW Van Zonne Energy in 2024, after a record year for Sun Tidies in 2023.
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