The Ministry of Electricity and Energy of South Africa has recently formally signed the final documents of the 7th round of bidding for Renewable Energy Independent Power Producer Procurement Plan (REIPPP), and approved the construction of six large PV power plants in Free State Province. The total installed capacity of these projects is 1290 MW. After completion, a 20-year power purchase agreement will be signed with the National Electric Power Corporation to inject new power into the energy structure adjustment in South Africa.

It is worth noting that this bidding creatively adjusts the underutilized onshore wind power capacity index to the solar project. Through rigorous review, Red Rocket South Africa from Cape Town successfully secured development rights for three projects, including 180 MW of Dwaalboom 3, 200 MW of Florida Solar Park and 210 MW of Virginia 4 Solar Park. The standard electricity price range is 499.99-506.89 South African Rand/MWh (about RMB 210-213/MWh), showing good economical efficiency.

Scatec Solar Africa, Norway, has contracted the remaining three project development rights, including two 240 MW OslaPV projects and 220 MW Leuwspruit solar power plants. The total investment of these projects is about R13 billion (about RMB5.46 billion), of which 90% will be in the non-recourse project financing mode, "said Alberto Gambkotta, executive vice president of the company." It is worth noting that the total project capacity announced by Scatec Solar Africa is 846 MW, which is different from the South African official disclosure and may include subsequent expansion plans.

The South African Ministry of Electricity and Energy has also announced that eight additional bidding agencies are entering the value-for-money negotiation phase, including four solar projects and four wind projects. This indicates that South Africa is taking multiple steps to promote the energy diversification strategy. In accordance with the South African Government's plan, an average of 5 GW of new renewable energy capacity will be achieved by 2030. Statistics show that South Africa has successfully put 1.1 GW of solar power generation facilities into operation in 2024, showing a strong momentum of development.

The bidding results will significantly increase the proportion of new energy power generation in South Africa, and is expected to reduce carbon dioxide emissions by about 2 million tons per year. As an important project of the Belt and Road energy cooperation, the construction of these power stations will provide new opportunities for Chinese new energy enterprises to participate in African energy construction, and further deepen the strategic cooperation between China and South Africa in the field of green energy. Analysts point out that South Africa's practice of optimizing resource allocation through innovative bidding mechanism provides practical experience for energy transformation in developing countries. This article is from www.seetao.com and shall not be reprinted without permission; otherwise, it must be reprinted. Please note: see Dow+original link) See Dow New Energy Column Editor/Yang Beihua