The government of South Africa has given approval to another six solar projects. This was during the seventh bid window of the country’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). These South Africa’s 1.29GW Six Solar Projects will expand the country’s portfolio of renewable energy projects.
The announcement is as a result of the Department of Electricity and Energy’s (DEE) decision to reallocate unutilized onshore wind capacity under the bid window to solar. This comes after an initial appointment of preferred bidders in December 2024.
Also read: Engie Begins Construction on Grootspruit and Graspan Solar Power Plant in South Africa
South Africa’s 1.29GW Six Solar Projects Factsheet
Total capacity: 1,290 MW (1.29 GW)
Location: All six projects are located in the Free State province of South Africa
Project developers and specific projects:
Scatec Solar Africa (Kroonstad PV Cluster): 240MW Oslaagte Solar 2, 240MW Oslaagte Solar 3, and 220 MW Leeuwspruit Solar (also referred to as Leeuwspruit Solar 1).
Estimated total project cost for Scatec’s cluster: approximately $740 million
Red Rocket South Africa: 180MW Dwaalboom 3 Solar project, 210MW Virginia 4 Solar Park, 200MWand Florida Solar Park.
Total Capacityof the Six Approved Solar Projects
According to an update that was posted by DEE , reveals that the six solar projects are located in the Free State province. They have an overall capacity of up to 1,290 MW. Furthermore, once they commence operations, the projects will operate under 20-year power purchase agreements.
Selected Preferred Bidders of the Six Solar Projects
Red Rocket South Africa
Cape Town-based independent power producer Red Rocket South Africa has been listed as the preferred bidder for three of the solar projects. These solar projects include the 180 MW Dwaalboom 3 Solar project that will be at a price of ZAR 499.99 ($28.55)/MWh. It has also been selected for the 200 MW Florida Solar Park with a set price of ZAR 506.89/MWh and the 210 MW Virginia 4 Solar Park at a price of ZAR 504.87/MWh.
Scatec Solar Africa Pty Ltd
Scatec Solar Africa Pty Ltd is the preferred bidder for the other three projects. These solar projects include the 240 MW Oslaagte Solar 2 and 240 MW Oslaagte Solar 3. Both of these solar projects have the same prices of ZAR 509.02/MWh. Additionally, it is the preferred bidder for the 220 MW Leeuwspruit Solar 1 with a price set at ZAR 514.06/MWh.
Scatec revealed its three projects, also known as the Kroonstad PV cluster, will have an estimated total project cost of ZAR 13 billion. The solar projects will be funded with up to 90% non-recourse project debt and the remaining funding will be acquired from the owners.
Also read: Construction of South Africa’s Largest Solar Project Commences
It has published higher project capacities than the government department, listing the Oslaagte projects at 293 MW each and the Leeuwspruit at 260 MW for a combined capacity of 846 MW.
Scatec’s Timeline on the Solar Project
According to Alberto Gambacorta, Scatec’s executive VP and GM for sub-Saharan Africa, stated that financial close and the start of construction for the project are both scheduled for next year.
DEE’s latest update implies that it has selected another eight compliant bidders eligible for appointment to preferred bidders. The selection of the bidders is subject to value for money negotiations. Even though names have not been revealed, the department has revealed the bids cover four solar and four wind projects.
Earlier this year, the South African government unveiled plans to deploy at least 3 GW of new renewables annually. This increases the renewables to 5 GW by 2030. Lastly, country deployed 1.1 GW of solar in 2024, after a record year for solar additions in the year 2023.
Also read: Eskom Greenlights 1 Gigawatt Solar Project in South Africa
