Image: Daily Maverick
South African Energy Minister Jeff Radebe has announced that the next bidding round for renewable energy agreements with independent power producers (IPPs) will begin in November, 2018.
Making the announcement while addressing a stakeholder engagement in Johannesburg, Radebe said the ministry anticipates that the new bidding round would secure 1,800 MW and attract further investments to South Africa’s energy sector.
“This could bring another R40-50 billion ($3.16-3.95 billion) of investment to the country, and ensure investment and economic growth as well as the opportunity to encourage opportunities for black industrialists and the development of black independent power producers,” he said.
While announcing the new bidding round, Radebe said the IPP program structure would provide opportunities for communities in which the projects are based.
Since taking over the national energy portfolio, Radebe has asserted the government’s commitment to renewable energy, with his first major investment deal being the approval of 27 outstanding renewable energy power purchase agreements.
The move is a strategy by Ford towards energy self-sufficiency and responsible business practices.