Is it working?

None of the projects are yet connected to the grid. Four have achieved commercial close and have begun construction. The final, which would contribute 153 MW was expected to reach commercial close in mid 2025. We will continue to monitor implementation until the intended capacity is added to the grid.

Actions

The procurement is concluded and four projects (360MW) have reached commercial close in the quarter. However, according to the IPP Office, these projects are experiencing construction delays. The remaining projects are working toward commercial close, though they are struggling to finalise grid access agreements with Eskom.

Are there plans?

The DMRE announced the preferred bidders and what remains is financial and commercial closure, construction and completion of the plants to be connected to the grid.

Is it on the agenda?

The DMRE initiated the procurement process in March 2023 and announced the preferred bidders in November 2023.

Goals

To procure battery storage capacity through the IPP Office. The site-specific BESIPPPP Programme Bid Window 1 is part the first part of a ministerial determination which aimed to procure 1,231MW by March 2024. BW1 seeks to procure 513MW.

Is it working?

None of the projects are yet connected to the grid. None have yet achieved commercial or financial close. We will continue to monitor implementation until the target capacity has been successfully added to the grid.

Actions

The bidding round was conducted and preferred bidders were announced on 23 December 2024. The IPP Office expects them to reach financial close in March 2026.

Are there plans?

The bid window was launched by government in 2023 and has been conducted in line with the wider plan for battery storage procurement, led by the IPP Office.

Is it on the agenda?

This second round followed quickly from the first in line with the ministerial determination that a total of 1,231 MW of battery storage capacity should be procured.

Goals

To procure battery storage capacity through the IPP Office. This second bid window followed quickly on BW1 of the BESIPPPP with a target of 615MW

Is it working?

The benefits from this bid window of a more stable energy supply will likely be felt in 2028/29.

Actions

Actions completed.

Are there plans?

Financial close is scheduled for end-October 2025.

Is it on the agenda?

It has ibeen successfully completed.

Goals

The BESIPPPP BW 3 RFP inteded to generate a total of 616MW of battery energy storage with projects allocated to five pre-selected substation sites identified by Eskom: Harvard, Leander, Theseus, Everest and Merapi substations, are all located in the Free State..

Is it working?

The procurment process is still underway, being the first procurement of gas-fired power from independent producers. The first main test will be achieving financial and commercial close, which will reflect whether or not such projects are financially viable. One problem to overcome is in supplying gas to these power stations as the infrastructure does not exist and that takes time to develop – and it is expensive. There may also be environmental objections to the further exploitation of fossil fuels.

Actions

The bidding round has not yet been concluded with the latest bid submission date of 31 October 2025 (having been postponed twice since the original date of 30 August 2024). Bidders must be capable of achieving commercial operations within 36 months after commercial close. Gas projects are therefore scheduled to come on stream in late 2026/early 2027.

Are there plans?

The former DMRE issued the request for proposals in December 2023 and a deadline for submission was set for 30 August 2024, which was later extended to 25 March 2025. However, this has been further delayed because the department is examining a few of the RFP's clauses that registered bidders brought up during the RFP's planned clarification process. In February 2025, the department announced a bid submission date of 31 October 2025.

Is it on the agenda?

Gas procurement has been on the agenda since at least 2020, but progress has been slow.

Goals

The gas BW1 aims to procure 2,000MW of new generation capacity, ancillary services and energy output to be produced from gas-fired power generation projects. This round specifically targets land-based electricity generation facilities utilising natural gas, located within South Africa. A second BW is intended to procure 1,000MW specifically from a single gas-fired power project in Coega, but is still in design phase (see BW2).

Is it working?

Plan is stalled pending the legal challenges. Construction has not begun and grid connection is some way off.

Actions

The project faces legal obstacles after civil society groups took action in March 2024. The case has yet to resolve and we have been unable to determine when judgement may emerge.

Are there plans?

Plans for the project have unfolded over several years, most recently by including it into the gas IPP bid window. However, the process is now being held up by legal challenges by environmental civil society groups. In the meantime Eskom has plans to set up a 3,000MW gas to power plant in Richard's Bay that may make Phakwe redundant, at least at the 2,000MW capacity.

Is it on the agenda?

The plant has been on the agenda for some time, with initial environmental authorisation granted in 2016.

Goals

Construct and connect a 2,000MW gas-fired power station in Richard's Bay.

Is it working?

No. The deal never pogressed beyond the initial agreement that was announced. The Mozambican government has been seeking answers and we believe the proposed deliverable has been abandoned by government. We therefore see this as a halted reform.

Actions

No actions have been taken to date to contribute Mozambican supply to the grid.

Are there plans?

It is not clear that concrete plans to implement the agreement to purchase 100MW were ever developed.

Is it on the agenda?

The agreement was announced at the National Assembly in 2023 by the electricity ministry to procure 100MW from Mozambique.

Goals

To procure cross-border electricity to assist in alleviating loadshedding impacts. Electricity minister Ramokgopa announced that there was an agreement in place between Mozambique and South Africa for the supply of 100MW of electricity.

Is it working?

We await financial close from the winning bidders before construction and contribution to grid stability. While the bid window is never going to achieve its initial targets, we will continue to monitor those projects that were selected until they are contributing to the grid before changing the status of this delivery item to halted. Projects are expected to join the grid in October 2027 at the earliest.

Actions

All of the required actions for the BW7 round have been implemented, however the bid window failed to achieve its initial capacity target with only 54% of the capacity available from the preferred bidders. We now await the preferred bidders to conclude commercial and financial close and begin construction. Additional solar PV preferred bidders were announced in July to make up the shortfall of wind projects, with more expected in August to close the gap on the round's targeted MW.

Are there plans?

Yes, in line with IPP Office's bid window approach, the RFP was released in December 2023 and closed on 15 August 2024 after being extended from April. Preferred bidders were announced in December 2024. The delays were due to grid access constraints that made it difficult for some projects to secure access agreements with Eskom.

Is it on the agenda?

The procurement process for Bid Window 7 was launched by the IPP Office in December 2023 and Electricity and energy Minister Kgosientsho Ramokgopa announced preferred bidders a year later.

Goals

To increase renewable energy procurement through Renewable Energy Independent Power Producer's Programme, BW7 had a total 5,000MW capacity target, which if successful would make it the largest REIPPP round to date.

Is it working?

The bid window 5 procurement process has been completed. Of the 25 preferred bidders appointed, 11 projects reached financial close and two of these are operational. We expect therefore that this deliverable will only be partially fulfilled.

Actions

The bidding round was held in April 2021, and 25 bidders were selected with a combined capacity of 2 583 MW. However, there were extensive delays between reaching financial close and the announcement of preferred bidders. In the intervening period, the war in Ukraine and the Covid-19 pandemic led to a surge in global commodity prices that changed the financial viability of projects and rendered some unfeasible. The IPP Office then called the bid bonds on those which had not reached financial close (which would terminate the bids) though developers have refused to pay and are challenging these legally. Only two wind projects - 288 MW- have been operational since April 2025.

Are there plans?

The BW5 round was launched in 2021 and run by the IPP Office. Preferred bidders were named in 2022. Nine are still being constructed.

Is it on the agenda?

Yes, BW5 was a key part of rebooting the REIPPP programme, which was stalled in 2016.

Goals

To increase renewable energy procurement through Renewable Energy Independent Power Producer's Programme, BW5 had a target of procuring 2,600MW of new capacity - comprising of 1, 600 MW of onshore wind and 1,000 MW of solar PV.

Is it working?

The bid window has been completed with winners announced who must now reach financial close.

Actions

Support the BW6 projects to reach commercial close.

Are there plans?

To ensure that the remaining projects from Bid Window 6 proceed to commercial close.

Is it on the agenda?

To increase renewable energy procurement through REIPPPP.

Goals

To increase renewable energy procurement through REIPPPP