The IPP Office's response to concerns raised by the media regarding the selection of power producers in the recent Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) is outlined in a new publication.
Here is an introduction and summary.
Objectives of the RMIPPP
The 2000 MW Ministerial Determination that was gazetted on 7 July 2020, following NERSA public consultation and concurrence, has two objectives, namely to procure new generation capacity:
• From a range of source technologies to address the electricity capacity supply gap as identified in the IRP2019
• To reduce the extensive utilisation of expensive diesel-based peaking open cycle gas turbine (OCGT) generators in the medium-to-long-term.
The RMIPPPP was designed with these two objectives in mind.
The outcomes of the RMIPPPP will, once the contracts are concluded, provide the Buyer with powers system services procured in a fair, transparent and competitive way. These projects will be available to generate energy output when called upon (to avoid load shedding) and provide ancillary services to reduce the significant cost of using diesel that is currently the only option available to the Buyer. At the same time the programme will support socio-economic development, job creation, local manufacturing and South African participation.