The Department of Electricity and Energy has reallocated planned wind capacity to solar PV projects under Bid Window 7 of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), citing high tariffs and limited grid access.
Originally launched in August 2023, Bid Window 7 aimed to procure 5 000 MW of new capacity with 3 200 MW allocated to onshore wind and the balance to solar PV. However, when the first preferred bidders were announced in December 2024, only eight solar PV projects, totalling 1 760 MW, were awarded. No wind projects were selected.
At the time, the department said bid tariffs for wind projects were above acceptable thresholds and did not allow for negotiation. It also indicated that additional compliant bidders could still be appointed, depending on further value-for-money assessments.
Following approval for megawatt reallocation, the department has now awarded a further six solar PV projects under Bid Window 7, bringing the total number of projects to 14. No wind projects have been awarded in this round.
In its update, the department said grid constraints in the Western Cape, Northern Cape and Eastern Cape prevent consideration of wind bids in those provinces where all submitted wind projects are located.
“The number of wind project submissions in Bid Window 7 can largely be attributed to eroded investor confidence owing to the outcomes of Bid Window 6 and bid window issuance inconsistencies. This is further exacerbated by persisting challenges around grid constraints and restrictive grid-access rules, particularly in areas with the highest wind resource potential,” Vincent Kok, Senior Technical Adviser at the South African Wind Energy Association, told Energize.
The department added to its recent announcement that a further eight compliant bidders are eligible for appointment as preferred bidders, subject to money negotiations. Of these, four are onshore wind projects.
However, Kok added, these issues are likely to affect future bid windows. “If grid-related constraints remain unresolved, we may continue to see reduced wind participation in upcoming bid windows despite a strong pipeline of mature and technically feasible projects,” he said.
