Mantashe Announces Eight IPP Preferred Bidders

Written by on 18 March, 2021

By: Lindelani Mbatha

Energy Minister, Gwede Mantashe, says the security of energy supply is the backbone of the South African economy.

Mantashe has been briefing media on the latest developments in the country’s energy sector.

He has also announced the preferred bidders for the Risk Mitigation Independent Power Producer Procurement Programme, to provide additional power in line with IRP 2019.

The programme was released into the market in August last year, to alleviate the electricity supply constraints and to reduce the extensive utilisation of diesel-based peaking electrical generators in the medium-to-long-term.

Mantashe says the evaluation process has resulted in the selection of 8 preferred bids totalling 1 845 Megawatts.

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He says the 8 energy additional power project will inject a total private sector investment of more than R45 billion rand to the country’s economy.

“About 3 800 job opportunities will be created during the 18 months construction period and a further 13 500 during the 20-year Power Purchase Agreement (PPA) term,”explains Mantashe.

Mantashe adds that during the construction period, the South African entity participation from these projects is 51% with black ownership at 41%.

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