About the SA Wind Industry

As the custodian of security of energy supply for South Africa, the Department of Energy’s has since 2011, already procured 6,4GW of wind energy.

Wind energy is procured using the “Renewable Energy Independant Power Producers’ Programme (REIPPP) which is a tender process. Consisting of “Rounds”, bidders with the lowest tariff and most competitive Economic Development score with some R91,1bn was already committed to various development initiatives under the REIPPPP [DOE,2016].

Power producers are awarded a 20-year Power Purchase Agreement (PPA) with Eskom (the state-owned utility) as the Off-taker which the South African National Treasury has fully underwritten.

By September 2016, the Country had benefitted from some R53.2bn in foreign direct investment committed to wind energy from foreign investment, making a strong case for continued Public private partnership to grow the sector.

The REIPPP Programme has become an implementing tool for the country’s Integrated Resource Plan 2010 (IRP 2010), which is currently under review. Building off a sound policy framework the State has aimed to balance its objectives through the IRP by considering the following in procurement decision making:

a) Reducing carbon emissions;
b) New technology uncertainties such as costs, operability, lead time to build etc;
c) Water usage;
d) Localisation and job creation;
e) Southern African regional development and integration;
f) Security of supply

It is clear that South Africa aims to leverage off Renewable Energy including Wind power to enhance its economic standing globally. By 2016, the country had in excess of 500 Turbines turbine supplying energy to the national grid and according to the Department of Energy a total projected value of goods and services of R101bn will be procured from broad-based black economic empowerment suppliers.