THIRD JAPAN-AFRICA
BUSINESS FORUM (JABF 2021)
29 June 2021 at 16:30 – 19:10
In partnership with

LIGHT UP AND POWER AFRICAPETRUS MADUNA NGOBENI ACTING CHIEF OPERATIONS OFFICER AT IPP OFFICE
www.ipp-projects.co.za

IPP
OFFICECONTENTS
1.

2.
3.
4.
5.
6.

Overview on the Independent Power Producers
Procurement Programme (IPPPP) and the mandate of the
Independent Power Producers Office (IPPO)Key IPPPP Achievements as at 30 December 2020
The role of the IPPPP in the Energy Planning environment
Future energy investment incentives
How are IPPs procured and NERSA’s role?
Other IPPPP initiatives where NERSA plays a key role

During 2021, we will commemorate 10 years since theestablishment of the Independent Power Producer
Procurement Programme (IPPPP)

IPP
OFFICEIPP OFFICE MANDATE

Facilitate and deliver on the IPPPP Objectives on behalf of DMRE
To enhance private sector participation in electrical
power generation capacity in the country.

To contribute to broader national
development objectives.

SERVICES PROVIDED

MANDATE DERIVED FROM

Procurement management

The capacity allocated to renewable energyand non-renewable generation in theIntegrated Resource Plan (IRP)

Monitoring, evaluation andcontract management

Ministerial Determinations issued by theMinister of Mineral Resources and Energy (interms of Section 34 of the Electricity
Regulation Act (ERA) and the NewGenRegs)

Professional energy advisory
services

Mandate Instructions issued by DMRE to theIPP Office

The IPPPP has been the major driver behind South
Africa’s growing Renewable Energy Footprint….

112

IPPs selected
as preferredbidders

56206
GWh64226422 MWMW

energy generated
by renewableenergy sourceselectricity
capacity
procured

R209.7billion4949
MWIPPOFFICE

already operationalfrom 76 IPPs

investment attracted forenergy infrastructure in all
bid windows

All data as at 31 December 2020, after 7 bid rounds (Bid Windows 1, 2, 3, 3.5, 4 andSmall Bid Windows 1 and 2)

The IPPPP also uniquely incorporates fundamentalsocio-economic development objectives

57 236

job years

Employment
opportunities for South
African citizens during
construction and operations

59.7

Rand billion(actual) local
content spend

0.4

1.4

Rand billion(actual) contribution
realised for socioeconomic
development

50%of total
project value
realised57.0

Rand billion(actual) contribution
realised forenterprisedevelopment

34%

Shareholdingby black South
Africans

Mton CO2 offset

By electricity
generated by theseprojects

10%

Shareholding
by Localcommunities

All data as at 31 December 2020

IPP
OFFICE

67.4

Million kiloliters

Water savings
since programme
inception

70.0

83%

(actual) BBBEE
spendof total
procurement

Rand billion

During 2021-22 the Department will roll-out theprocurement of 5 bid windows (11 813 MW) in linewith the Second Determination under IRP2019
2021

2021-222021-22
Renewable Energy
Bid Window 5
released on 12 April
2021 – 2600 MW:
o 1 600 MW Windo 1 000 MW Solar PV

IPPOFFICEGas toPower BidWindow –3 000 MW

2022-23

BatteryStorage Bid
Window –513 MW

Renewable Energy
Bid Window 6o 2 600 MW
o 1 600 MW Windo 1 000 MW Solar PV

Coal Bid Windowo 1 500 MW

Moving towards a green economic recovery
There is widespread concurrence that a massive investment programme insustainable energy would be the stimulus that will have the best short- and longterm multiplier effects…
Systems at the forefront of the global energy transition away from fossil fuels toenvironmentally sustainable, secure, reliable and low-cost energy systems, are:Renewable energy technologies+ Energy storage systems + Gas
To help overcome resource variability and intermittency

Investments in sustainable energy systems will put large numbers of unemployed people towork as quickly as possible (high short-term multiplier), and create assets that meetessential productive long-term future needs (high long-term multiplier).

Investment decisions must align with the vision of a sustainable and just future

IPPOFFICE

Potential impact of the RE procurement roll-outConservative estimates of the potential impact of the roll-out of solar PV and windprojects, as allocated in the IRP 2019, based on actual (planned) figures fromcontracted projects under the REIPPPP.

IPP
OFFICE

20 400 MW

IRP 2019 allocation for procurementfrom solar PV and wind projects

R665.9 billion
Investment attracted

64 199 GWh

Energy generated per annum by RE
projects procured under IRP 2019
(allocation for Solar PV and Wind)353 069

Total jobs created for SA
citizens during construction
and operations

Most of the contracted REIPPPP projects are consistently achieving more than planned, hence figures provided could be understated.

Thank you
Bylsbridge Office Park, Building 9,
Cnr Jean and Olievenhoutbosch Ave,
Centurion+27 (0)87 351 3000
www.ipp-projects.co.za

IPP
OFFICE