Joemat-Pettersson names preferred bidders for coal baseload IPPP

This programme allows the private sector to generate energy using coal resources for the first time.

Energy Minister Tina Joemat-Petterson. Picture Ilze-Marie le Roux/EWN

CAPE TOWN - Energy Minister Tina Joemat-Petterson has announced the preferred bidders in the coal baseload Independent Power Procurement Programme (IPPP) in Cape Town this morning.

This programme allows the private sector to generate energy using coal resources for the first time.

With a combined investment of over R40 billion, Thabametsi and Khanyisa has been announced as the preferred bidders for the first coal baseload IPPP.

Both companies submitted prices below the stipulated qualification price of 82 cents per kilo-watt hour.

The two companies will collectively add more than 863 megawatts to the power grid, creating more than 20,000 jobs in the process.

Joemat-Petterson says government remains committed to the IPP programme.

The Energy Minister says although she supports the development of SMMEs, there is simply no space for minor players in the current independent power procurement programme.

She says the investment value of the programme is too large for it to have minor players.

"However, I am encouraging the further development of SMMEs and other BEE partners so that we do not have a monopoly of the sector by the few well developed BEEs."