The ambitious RMIPPPP aimed to procure 2 000MW through various dispatchable technologies
The department of mineral resources and energy’s Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP), launched in 2020 in response to the country’s pressing energy challenges, is facing some headwinds due to budget quotes having expired before projects could even get off the ground.
The ambitious RMIPPPP aimed to procure 2 000MW through various dispatchable technologies, including gas, solar PV, wind, battery energy storage systems and hybrid technologies. Under the programme, the Independent Power Producer Office (IPPO) oversees procurement, while Eskom Holdings SOC acts as the designated buyer, aligning with a ministerial determination in 2020.
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In 2021, eleven preferred bidders were announced, leading to Eskom issuing budget quotes for all projects. While seven projects progressed to the construction phase, the remaining four, including a gas and PV facility in the Eastern Cape and Northern Cape, faced challenges.
On Friday, Eskom confirmed that five budget quotes for the grid integration of these four projects expired on 31 December 2023, with no further extensions.
Despite prior extensions granted in efforts to ensure project success, Eskom expressed disappointment in the outcome, emphasising the projects’ role in alleviating pressure on the power system and minimising load shedding impacts.
Originally slated for commercial close in July 2021, the projects experienced multiple postponements, prompting budget quote validity period extensions.
By July 2023, the IPP Office fixed the long stop date for commercial close on 31 December 2023, with no further extensions beyond that date.
The utility stated that its governance process demanded expeditious project delivery within approved timelines, leading to validity period extensions ranging from 20 to 30 months.
Gemsbok PV and Mulilo Coega Gas Power Plant, with a combined dispatchable capacity of 200MW, are affected by this decision, reducing the total contracted dispatchable capacity to 1 400MW.
The utility said grid connection capacity initially reserved for these projects would now be reallocated to other projects ready to generate electricity.
The table below summarises the affected projects, which include four gas-to-power facilities and a solar photovoltaic facility with a total export capacity of 1 600MW (and contracted dispatchable capacity of 1 400MW)
Meanwhile, Eskom temporarily halted load shedding, citing improved generating capacity and ample emergency reserves.
Power and electricity expert Vally Padayachee stated that Eskom’s decision to implement stages 2 and 3 load shedding, contradicting earlier assurances of a load shedding-free start to the new year, was unnecessary.
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He suggested that the utility “takes on too much maintenance work and puts unnecessary pressure” on limited teams, indicating a discrepancy between Eskom’s plans and its operational capabilities.
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