SA Awards 16 Renewable Energy and Battery Storage Projects Worth Over R44 Billion

Eight battery storage projects have been selected from 31 bids, securing a total investment of R12.8 billion to enhance South Africa’s energy storage capabilities.

The Department of Electricity and Energy announced the appointment of 16 projects under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) Bid Window 7 and the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) Bid Window 2. These projects represent a combined contracted capacity of 1,760MW for solar photovoltaic (PV) energy and a significant contribution to the country’s renewable energy goals.

REIPPPP Bid Window 7: Solar PV Projects

Eight solar PV projects have been selected from a pool of 48 bids, committing a total investment of R31.4 billion. The projects highlight a strong focus on Black Economic Empowerment (BEE) and local economic benefits:

Ownership & Participation: 49% South African equity participation, with 46% Black Economic Empowerment involvement.

Local Content: 38.8% of project costs will be allocated to local content, totaling R7.8 billion during construction and R2.4 billion during operations.

Job Creation: Approximately 6,971 job opportunities, measured in job years, will be generated during construction and operations.

Enterprise Development: R3 billion allocated to Black Enterprise Procurement, R2 billion to QSEs and EMEs, and R333 million for black women-owned enterprises.

Community Development: R73 million for enterprise development, R129 million for socio-economic development, and R138 million for skills development.

The projects also promise significant contributions to local economies through initiatives in training, education, and community upliftment.

BESIPPPP Bid Window 2: Battery Energy Storage Projects

Eight battery storage projects have been selected from 31 bids, securing a total investment of R12.8 billion to enhance South Africa’s energy storage capabilities. Key commitments include:

Black Ownership: 41% black shareholding in project companies, 27% by construction contractors, and 36% by operations contractors.

Local Content: 31% of project costs will be allocated to local content, equating to R2.6 billion during construction and R2.5 billion during operations.

Job Creation: An estimated 1,570 job opportunities will be created during the construction and operational phases.

Enterprise Development: R1.8 billion in Black Enterprise Procurement, R1.4 billion for QSEs and EMEs, and R659 million for black women-owned enterprises.

Community Initiatives: R316 million allocated for supplier development, skills development, bursaries for black students, and socio-economic projects, including programs for black disabled individuals.

Additional Impacts and Future Outlook

These initiatives are part of South Africa’s strategy to transition to a greener energy mix while fostering economic growth and social equity. The combined investments of over R44 billion underscore the government’s commitment to sustainable development and energy resilience.

With these projects, South Africa is poised to expand its renewable energy capacity, create jobs, and empower local communities, setting the stage for a robust energy transformation in alignment with global climate goals.