The South African Photovoltaic Industry Association (SAPVIA) has welcomed the announcement by Minister of Mineral Resources and Energy Gwede Mantashe of 13 solar PV projects as preferred bidders in the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) Bid Window (BW) 5.

The bid window is seeking to procure a total of 2600 MW of which 975 MW has been preferred from solar PV projects in the Northern Cape, Western Cape and Free State provinces. With financial close expected in just four months, the industry looks forward to much needed generation capacity on the network.

The selection of these preferred bidders has highlighted solar PV’s position as a least-cost option, with bid tariffs reaching an all-time low. Solar PV projects have a weighted average of R428,79/MWh with the lowest bid being R374,79/MWh.

“We are delighted to see the announcement of BW5 preferred bidders and congratulate those members who have worked tirelessly to ensure solar PV is a key contributor to the country’s energy mix. With the low tariffs and rapid build times, solar PV remains the technology of choice in meeting the country’s electricity requirements,” said Niveshen Govender, SAPVIA’s chief operating officer.

Through the REIPPPP, key economic development targets continue to be achieved with increasing ownership and participation from South Africans, specifically black women. SAPVIA is fully supportive of these objectives and continues to work with members and government to create an enabling environment that delivers local content during construction and operation of projects.

“We must acknowledge some of the ongoing challenges regarding local content requirements (amongst others) with respect to the RMIPPPP and we are engaging with government to develop a sustainable local solar PV manufacturing industry in South Africa.

“Consistent local demand is required if we are to build confidence and create local solar PV value chain in South Africa. Restarting renewable generation capacity is vital to this and we are pleased that the Minister has responded to calls from industry to act quickly and proceed with BW6. The solar PV sector stands ready to play our part in delivering energy security and powering South Africa’s economic recovery," says Govender.

Contact Kim Thomas, SAPVIA, Phone 021 200-5856, kim@sapvia.co.za, www.sapvia.co.za