Mineral Resources and Energy Minister Gwede Mantashe says the Renewable Energy Independent Power Producer Procurement Programme (REIPPP) will allow for at least 40 percent local content during the construction phase.
He has announced the appointment of 25 Preferred Bidder projects under the programme.
He says this will assist in stimulating local industrial production. Mantashe was speaking during a virtual media briefing regarding the energy situation in the country.
Media briefing below:
He says the projects are expected to inject R50 billion of private sector investment into the economy.
“Entity participation of 49.2 percent, against the target of 49 percent. As we roll out, we must begin to see real owners who are South Africans and who are black and that process takes its own time. In an effort to re-stimulate local manufacturing and production in the renewable energy value chain, the RFP required projects to commit at least 40 percent local content during construction.”
Numsa reacts to Mantashe’s announcement
Trade union Numsa’s General Secretary Irvin Jim has raised questions over the REIPPP and whether load shedding will ultimately be dealt with.
“The announcement is consistent with the integrated resource plan but I am not sure what is being addressed because in that plan Eskom availability factor is around 65%, in other words, Eskom is not performing and to introduce more IPPs into the grid is not going to change Eskom’s availability facto. It is supposed to be at 75% and Eskom is performing at 65%. The fundamental question is how is that going to deal with the crisis of load shedding?“
