South Africa signs 203 MW renewable energy agreement

Gwede Mantashe, Minister of Mineral Resources and Energy has finalised an agreement of 203 MW with bidders appointed under the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP). Both the projects are hybrid renewable with a total capacity of 203 MW and consist of a combination of battery storage technologies, solar PV and onshore wind.

Oya energy hybrid facility project which has a capacity of 128 MW is developed by GDF International SA, G7 Power, Meadows Oya Energy located at Matjiesfontein, Western Cape. Umoyilanga Energy project with a capacity of 75 MW is developed by EDF Renewables located Avondale, Northern Cape and Dassiesridge, Eastern Cape. Furthermore, the projects have time till December 2023 to finalise conditions precedent to conclude financial close and begin project construction. The new generation capacity is anticipated to go online from 2025.

In August 2023, the National Treasury of South Africa introduced a loan guarantee scheme – the ‘Energy Bounce Back’ to support commercial and industrial (C&I) solar projects. The scheme had an objective of setting up 1 GW of rooftop PV capacity. It also attempted to help micro and informal companies to be more resilient to loadshedding.