NERSA Approves Generation Licences For Preferred Bidders In South Africa’s Renewable Energy Programme

The National Energy Regulator of South Africa (NERSA) has announced the approval of generation licences for five preferred bidders in the Department of Mineral Resources and Energy’s (DMRE) Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) Bid Window Six (BW6). This development marks another milestone in South Africa’s transition to renewable energy and its commitment to reducing reliance on fossil fuels.

At its meeting on June 29, 2023, NERSA granted generation licences to the five preferred bidders, as listed below:

1. Doornhoek PV (Pty) Ltd: Contracted Capacity – 120 MW, Location – North West Province, Local Municipality – Matlosana, Fully Indexed Price – ZAR 540.00/MWh.
2. Boitumelo Solar Power Plant (RF) (Pty) Ltd: Contracted Capacity – 150 MW, Location – North West Province, Local Municipality – Ditsobotla, Fully Indexed Price – ZAR 469.50/MWh.
3. Kutlwano Solar Power Plant (RF) (Pty) Ltd: Contracted Capacity – 150 MW, Location – North West Province, Local Municipality – Ditsobotla, Fully Indexed Price – ZAR 469.50/MWh.
4. URSA Energy (RF) (Pty) Ltd: Contracted Capacity – 240 MW, Location – Free State, Local Municipality – Matjhabeng, Fully Indexed Price – ZAR 486.50/MWh.
5. Antlia Energy (RF) (Pty) Ltd: Contracted Capacity – 200 MW, Location – Free State, Local Municipality – Tokologo, Fully Indexed Price – ZAR 498.90/MWh.

These preferred bidders have successfully met all the licensing requirements stipulated under section 7 of the Electricity Regulation Act, 2006. The Act mandates that a generation facility must obtain a licence from the Energy Regulator before commencing operations. NERSA conducted a thorough analysis of the licence applications and found them to be in compliance with the necessary criteria.

With an average price of ZAR 492.88 per megawatt-hour (MWh) and a combined capacity of 860 MW, these approved projects will contribute significantly to South Africa’s renewable energy capacity and support its goals of achieving a cleaner and more sustainable energy mix. The successful bidders can now proceed with the development and operation of their solar photovoltaic (PV) projects in the designated provinces.

The issuance of these generation licences reinforces South Africa’s commitment to renewable energy and represents another step forward in the country’s ongoing efforts to reduce greenhouse gas emissions and combat climate change. The REIPPPP continues to attract private sector investment and drive the growth of clean energy in South Africa, creating new opportunities for job creation, economic development, and environmental sustainability.