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South Africa publishes preferred bidders for 2 GW tech-neutral tender

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South Africa’s department of Mineral Resources and Energy has published the preferred bidders for the Risk Mitigation Independent Power Producer Procurement Programme and to provide an update on the procurement of additional power in line with IRP 2019.

The Bid Submission closed on 22 December 2020 and attracted a total of 28 bid responses
with a potential contracted capacity of approximately Five Thousand One Hundred and
Seventeen megawatts (5 117MW).

The eight preferred bidders are: ACWA Power Project DAO, Karpowership SA Coega,  Karpowership SA Richards Bay, Karpowership SA Saldanha, Mulilo Total Coega, Mulilo Total Hydra Storage, Oya Energy Hybrid Facility, Umoyilanga Energy.

The solutions provided by these preferred bidders are from a combination of a range of
technologies that include, Solar PV, Wind, Liquified natural gas and battery storage.

“The prices for the proposed solutions range from One Thousand Four Hundred and Sixty-Eight Rands per megawatt hour (R1 468 per MWh) to One Thousand Eight Hundred and EightyFive Rands per megawatt hour (R1 885 per MWh),” the department said in a statement.

The weighted average price is One Thousand Five Hundred and Seventy-Five Rands per megawatt hour (R1 575 per MWh).

These 8 projects will inject a total private sector investment amount of R45 billion to the
South African economy, with an average local content of 50% during the construction period.

South African entity participation from these projects is 51% with black ownership at 41%.
About Three Thousand Eight Hundred (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.

The Preferred Bidders are required to reach Financial Close by no later than the end of July
2021. Due to the urgency to bring power online, this date is not negotiable. It is for the
Preferred Bidders to manage all the risks to reach financial close.

It is envisaged that, first power from these projects will be connected to the grid from August2022.

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