The government of South Africa has approved a further six solar projects under the seventh bid window of the country’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).
The announcement is the result of the Department of Electricity and Energy’s (DEE) decision to reallocate unused onshore wind capacity under the bid window to solar, following an initial appointment of preferred bidders last December.
An update posted by DEE says the six solar projects, each located in the Free State province, cover 1,290 MW of new capacity. Once operational, the projects will operate under 20-year power purchase agreements.
Cape Town-based independent power producer Red Rocket South Africa is listed as the preferred bidder for three of the projects. These include the 180 MW Dwaalboom 3 Solar project, at a price of ZAR 499.99 ($28.55)/MWh, the 200 MW Florida Solar Park with a price of ZAR 506.89/MWh and the 210 MW Virginia 4 Solar Park at a price of ZAR 504.87/MWh.
Scatec Solar Africa Pty Ltd is the preferred bidder for the other three projects, including the 240 MW Oslaagte Solar 2 and 240 MW Oslaagte Solar 3 projects, both with prices of ZAR 509.02/MWh, alongside the 220 MW Leeuwspruit Solar 1 with a price of ZAR 514.06/MWh.
Scatec says its three projects, dubbed the Kroonstad PV cluster, will have an estimated total project cost of ZAR 13 billion, financed with up to 90% non-recourse project debt and the remaining via equity from the owners.
It has published higher project capacities than the government department, listing the Oslaagte projects at 293 MW each and the Leeuwspruit at 260 MW for a combined capacity of 846 MW.
Alberto Gambacorta, Scatec’s executive VP and GM for sub-Saharan Africa, said financial close and the start of construction are both scheduled for next year.
DEE’s latest update adds that it has appointed a further eight compliant bidders eligible for appointment to preferred bidders, subject to value for money negotiations. While names have not been disclosed, the department has revealed the bids cover four solar and four wind projects.
Earlier this year, the South African government unveiled plans to deploy at least 3 GW of new renewables annually, increasing to 5 GW by 2030. The country deployed 1.1 GW of solar in 2024, following a record year for solar additions in 2023.
