WIND POWER PROCUREMENT WILL UNLOCK INVESTMENT AND PROVINCES VALUE CHAIN
September 25, 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).
“This signals the reawakening of the Wind Industry, which the sector is ready to deliver on,” said SAWEA CEO, Ntombifuthi 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.
Wind power directly benefits the parts of the country that are rich in wind resources, such as the Western Cape, Eastern Cape and Northern Cape provinces.
“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 the various sectors of the economy, particularly in the construction, manufacturing, transportation, logistics and professional services sectors,” said Ntuli.
The Western Cape, in particular, will directly benefit from local jobs and the stimulus across the industry value chain directly linked to the Atlantis Greentech SEZ, which is at the Provinces epicentre of greentech activities.
“Wind procurement sustains economic objectives that drives the country, as it unlocks the underlying economic value of existing infrastructure,” concluded Ntuli.
This determination sets the stage for Bid Window 5 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and confirms that IPPs will sell the power to State-owned power utility, Eskom.
The Department of Mineral Resources and Energy will be the procurer, with duties that include negotiating power purchase agreements.
SAWEA represents the interests of over 100 members who are invested in the South African wind power value chain.