Mantashe announces 25 preferred bidders for the IPP project

Minerals and Energy Minister Gwede Mantashe said government had made big strides in bringing more power producers on line.

FILE: Energy and Mineral Resources Minister Gwede Mantashe. Picture: @GCISMedia/Twitter

JOHANNESBURG - Minerals and Energy Minister Gwede Mantashe has announced 25 successful bidders for bid window five of the independent power producers (IPP)’s project.

On Thursday night, Mantashe gave an update of the new successful bidders - as government attempts to add more capacity to the grid.

He said government had made big strides in bringing more power producers on line.

The department will now pursue financial close within the next six (6) months, which is a key milestone for the signing of the agreements. Congratulations to all the successful bidders that participated in this bid.”

He said it was unfortunate that he had to make this announcement while the country was dealing with load shedding.

“The immediate solution to our electricity challenges lies in getting the existing plants to perform predictably. Bid window five aimed to procure a total of 2,600 MW, which includes 1,600 MW from onshore wind and 1,000 MW from Solar PV plants. The programme attracted a total of 102 bids with capacity totalling 9,644 MW.”

Eskom announced on Thursday that they would downgrade load shedding from stage 4 to stage 3.

Seven of the bidders are from the Free State while one is from KwaZulu-Natal.

“The 25 preferred bidder projects will inject a total private sector investment amount of about R50 billion to the South African economy. Preferred bidder projects will further create a total of 13,900 job opportunities,” the minister added.

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