WIND POWER PROCUREMENT UNLOCKS INVESTMENT AND INDICATES GOVERNMENTS REFORMS

WIND POWER PROCUREMENT UNLOCKS INVESTMENT AND INDICATES GOVERNMENTS REFORMS

September 28, 2020

The South African Wind Energy Association (SAWEA) welcomes Mineral Resources and Energy Minister Gwede Mantashe’s gazetted Section 34 Determination to procure more renewable energy for South Africa, from Independent Power Producers (IPPs), saying that this is one step closer to unlocking an estimated R40 billion annual investment from the wind energy industry.

This announcement has been followed up by President Ramaphosa confirming that this procurement will allow for the development of 11 800 MW of new electricity capacity indicating government’s commitment to unlocking growth and investment in the ailing economy, exacerbated by the COVID-19 pandemic.

“This signals the reawakening of the Wind Industry; the sector is ready to deliver on clean power and rolling investment,” said SAWEA CEO, Ntombifuthi Ntuli.

Wind power not only directly benefits the parts of the country that are rich in wind resources, such as the Western Cape, Eastern Cape and Northern Cape provinces, but also unlocks massive investment across a number of sectors.

“We have estimated that the roll out could attract R40 billion annually, which means that the sector will create direct jobs for the coming years in various sectors of the economy, particularly in the construction, manufacturing, transportation, logistics and professional services sectors,” said Ntuli.

This latest determination opens the way for the procurement of 4 800 MW from wind, which SAWEA explained is part of the 2019 Integrated Resource Plan (IRP), South Africa’s energy roadmap, and sets the stage for Bid Window 5 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

“Wind procurement sustains the economic objectives that drive the country, as it exposes the underlying economic value of existing infrastructure,” concluded Ntuli.

NOTE:

• The Department of Mineral Resources and Energy will be the procurer, with duties that include negotiating power purchase agreements.
• The President has noted that several additional reforms will be implemented in the energy sector.