Energy procurement to be fast-tracked, says Mantashe

Mineral Resources and Energy Minister Gwede Mantashe says his department is working flat-out to sign energy procurement project agreements by no later than the end of this month, in efforts to add another 13 813MW to the national grid. Picture: ANA Archives

Mineral Resources and Energy Minister Gwede Mantashe says his department is working flat-out to sign energy procurement project agreements by no later than the end of this month, in efforts to add another 13 813MW to the national grid. Picture: ANA Archives

Published Oct 13, 2022

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Cape Town - Mineral Resources and Energy Minister Gwede Mantashe says his department is working flat-out to sign energy procurement project agreements by no later than the end of this month, in efforts to add another 13 813MW to the national grid.

Mantashe was speaking at the 11th annual Windaba conference at the Cape Town International Convention Centre.

Windaba is hosted by the South African Wind Energy Association and aims to facilitate partnerships for the implementation of renewable energy projects, influence energy policy, and provide a framework for strategic decision-making.

This year’s conference theme is “Wind Power Spearheading the Energy Transition for Accelerated Growth”.

“This conference takes place when as a country we are experiencing frequent load shedding due to challenges with our existing power generation plants performance. We welcome and avail ourselves for gatherings of this nature because they enable us in the energy sector to step back, reflect and engage openly and constructively on possible policy, technical and financial solutions to our challenges,” Mantashe said.

He said wind energy was becoming one of the lowest-cost clean energy sources for new electricity, and that wind energy projects have contributed to electricity generation during morning and evening peak demand in South Africa.

Outside of Eskom’s new build programme made up of Medupi, Kusile and Ingula, South Africa’s investment in new power generation capacity has mainly been through the Independent Power Producers Procurement Programme launched in 2010 following the first Integrated Resource Plan “Excluding the recently signed Bid Window 5 and Risk Mitigation programme projects, the programme has attracted over R209.6 billion in private sector investment.

“To date, over 6 106MW of electricity capacity from 88 renewable energy IPP projects has been commissioned and is supplying energy into the national grid.

“By the end of March this year, these projects had generated over 74 805 gigawatt hours of electricity,” Mantashe said.

By the end of March 2022, 32 wind projects had reached commercial operation, delivering over 3 063MW capacity to the national grid.

These wind energy projects have created over 23 000 job opportunities.

“There are currently procurement programmes in progress and at various stages (of) procurement. These are the Risk Mitigation Procurement Programme, Bid Window 5, Bid Window 6, and Battery Storage Procurement Programme. Total capacity from these programmes is about 13 813MW. We are working flat out to ensure these projects sign agreements by not later than the end of October,” Mantashe said.

Other developments which will “significantly increase” investment opportunities in power generation and renewable energy include the issuing of another Section 34 Ministerial Determination for renewable energy and storage totalling 14 791MW and the exemption of embedded generation facility of any size from the need to be licensed by the Regulator, Mantashe added.

“Clean energy technologies, including renewable energy, and their deployment is central to our efforts to move from high to low carbon emissions. However, the continued polarised debate among technologies needs to come to an end.

“South Africa must unashamedly pursue mixed energy technologies to address energy poverty and ensure security of energy supply,” Mantashe said.

Cape Times