South Africa Awards 1.29 GW Solar, 615 MW Storage in Latest Tenders

South Africa’s Department of Electricity and Energy has awarded preferred bidder status for a combined 1.29 GW of solar PV and 615 MW/2.46 GWh of battery storage capacity under two major procurement programs aimed at accelerating clean energy deployment.

Under the seventh bid window of the Renewable Energy Independent Power Producer Procurement Program (REIPPPP), Norwegian developer Scatec secured three solar projects totaling 846 MW. The projects – Oslaagte Solar 2 (293 MW), Oslaagte Solar 3 (293 MW) and Leeuwspruit Solar (260 MW) – make up the Kroonstad PV Cluster, located in South Africa’s Free State province. The portfolio represents a project cost of ZAR 13 billion.

Scatec will hold a 50.9% equity stake, with Stanlib Asset Management and a Community Trust holding 46.5% and 2.6%, respectively. The company will also provide engineering, procurement and construction; operations and maintenance; and asset management services. Financial close is expected in 2026, with 20-year power purchase agreements (PPAs) secured. The projects will be financed with up to 90% non-recourse project debt.

In total, six solar PV projects were selected under REIPPPP Bid Window 7, all located in the Free State province. These projects achieved competitive bid prices ranging between ZAR 499.99/MWh and ZAR 514.06/MWh. In addition to Scatec, other selected developers include Red Rocket South Africa, MBY Energy and Jade-Sky Energy, with awarded projects including: Dwaalboom 3 Solar (180 MW), the Virginia 4 Solar Park (210 MW) and the Florida Solar Park (200 MW).

REIPPPP Bid Window 7 was launched in December 2023 to procure up to 5,000 MW of renewable energy capacity, as part of South Africa’s broader efforts to strengthen energy security and reduce reliance on fossil fuels.

Battery Storage Awards Under BESIPPPP

Alongside the solar awards, the government also announced preferred bidders under the third Battery Energy Storage Independent Power Producer Procurement Program (BESIPPPP). The program aims to secure up to 616 MW of battery energy storage capacity to enhance grid stability and power system reliability.

Scatec was awarded the 123 MW/492 MWh Haru BESS project, located at the Leander Substation. Meanwhile, Mulilo Energy secured four BESS projects in the Free State province, totaling 493 MW/1,972 MWh. These systems will deliver energy, capacity, and ancillary services to the National Transmission Company of South Africa under 15-year PPAs.

The BESIPPPP and REIPPPP programs form a key part of South Africa’s plan to procure 28 GW of new generation capacity through public-private partnerships and competitive tenders. The latest awards underscore the country’s commitment to fast-tracking clean energy development and addressing persistent electricity supply challenges.