Mantashe’s announcement provides certainty, but urgency still needed
19 March 2021
We welcome the announcement made by the Minister of Mineral Resources and Energy, Gwede Mantashe, last night (18 March 2021) of the preferred bidders for the Risk Mitigation IPP Procurement Programme (RMIPPPP) and the release of Renewable Energy IPP Procurement Programme (REIPPPP) Bid Window 5 which we have been calling for.
We also note the announcement that the Department of Mineral Resources and Energy are reviewing the licensing threshold for increased embedded self-generation and I call on Minister Mantashe to ensure that this is urgently finalised to unlock the significant potential of embedded power generation.
With a predicted shortfall of 4 000 MW over the next five years in South Africa and load shedding costing the economy about R75 million per stage, per day in the Western Cape, we need all the energy we can get, as quickly as possible.
And, so we are pleased about the aggressive timeframes set through the bidding processes and urge that this is met to mitigate further economic losses due to load shedding.
The opening of REIPPPP Bid Window 5 will allow 2 600 MW of wind and solar to be procured and, together with subsequent bid windows, will not only allow for increased energy security but will be a critical step in South Africa’s energy transition towards a greener energy future.
Importantly also, the Western Cape is an attractive investment location for renewable energy projects, housing 12 renewable energy IPP projects and the head offices of 89 renewable energy companies.
And so, the opening of Bid Window 5 will give rise to further investment in green economy infrastructure, including in our Green Tech focused Atlantis Special Economic Zone, which will boost job creation and economic growth in the Western Cape.
Businesses and investors need certainty and so these announcements are a positive signal for the economy. Now we need Minister Mantashe to deliver.
Statement issued by David Maynier, Western Cape Minister of Finance and Economic Opportunities, 19 March 2021
