South Africa is expected to reopen bids for renewable energy
A new round of renewable energy project bidding is not only related to the prospect of large-scale and commercial development of renewable energy in South Africa, but also an important way for the country to solve the problem of power shortage.
In 2020, the spread of the Covid-19 epidemic disrupted the development of renewable energy in South Africa, and the tendering of related projects was postponed twice.Now, as business hopes grow, the government is gearing up for a new round of bids for renewable energy projects.It is widely believed that a new round of renewable energy project tendering is not only related to the prospects for the large-scale and commercial development of renewable energy in South Africa, but also an important way for the country to solve the local power shortage.
Wind power bidding was confirmed to start first
The much-anticipated fifth round of bidding for renewable energy projects in South Africa was scheduled to open in the fourth quarter of 2020.However, due to the Covid-19 outbreak, South Africa cannot even guarantee a sustained and stable supply of electricity, let alone a planned tender for renewable energy projects.As a result, South Africa's fifth round of bidding for renewable energy projects was postponed from the end of November 2020 to the end of December but still not held as scheduled.
However, the head of the South African Wind Energy Association said: "As things stand, tenders for wind projects are expected to open in the first quarter of 2021.If all goes well, it could be settled as early as January.Tenders for other renewable energy projects will also be launched in succession."
In recent years, South Africa's local power shortage continues to worsen, which not only seriously affects people's livelihood, but even begins to restrict industrial production and economic development.There are growing calls to develop renewable power amid new demands for more reliable, cleaner power supplies.The South African Photovoltaic Industry Association says renewable energy projects are the fastest way to supply electricity to the grid and are an effective solution to South Africa's energy woes.To this end, the South African government has also continuously released the signal that it will vigorously support the development of renewable energy, and has repeatedly publicly stated that it will conduct bidding for renewable energy projects.
The direction and policy of South Africa's energy strategy have always been highly correlated.Renewable energy procurement is currently the main way for South Africa to continue to increase the installed capacity of renewable energy power, and it is imperative to restart the tender.Under current plans, South Africa is still open to tender for a total of 1.6 gigawatts of wind power and 1 gigawatt of photovoltaic by 2022.
The transformation of the state power company removes obstacles
In fact, the fifth round of bidding for renewable energy projects in South Africa was slow due to the Covid-19 epidemic and the South African National Power Company (Eskom) 's rejection of renewable energy, according to industry insiders.
Eskom, South Africa's largest power company, provides 90 percent of the country's electricity and has been burning coal for years.Eskom had previously refused to sign long-term renewable power purchase agreements with 27 independent power producers because "certain conditions were not ripe" until 2018, three years after the results of the bidding round were announced.
In recent years, however, Eskom's power generation business has deteriorated and blackouts have become routine, making it impossible to keep South Africa safe.At the same time, in 2020, the South African government published a new version of the National Integrated Resources Plan (IRP), which increased the emphasis on renewable energy, forcing Eskom to focus on clean energy instead of coal power.
"Eskom officials have made it clear that they will address South Africa's indigenous power shortage through renewable energy generation projects, not coal or nuclear power.""Also, Eskom has begun internal reforms to develop a renewable energy roadmap.According to a new development plan announced by Eskom, the company plans to set up a separate division dedicated to renewable energy to promote the increasing share of renewable energy generation."
Policy dividends boost the admission of foreign capital
According to energy information website GTM, the South African government is now working hard to secure a new round of bidding for renewable energy projects.International energy companies that have been paying attention to this issue are also generally optimistic about this round of bidding.
In September 2020, the Ministry of Mineral Resources and Energy of South Africa held the Fifth Renewable Energy Project Tender Meeting to engage with potential project investors, power producers and developers.At that time, international power giants such as Saudi Arabia's International Power and Water Company, Enel of Italy and EDF were involved in the talks.
According to industry analysts, the policy dividend is one of the reasons for greater international participation in South Africa's renewable energy market.It is reported that the South African renewable energy procurement program project income is very substantial, and the South African government will bear the loss of exchange rate fluctuation during the construction of the project.
Robinson, head of the South African Photovoltaic Industry Association, said that as the scale of renewable energy continues to expand and the popularity of renewable power continues, it is expected that South Africa will see a new boom in renewable energy development, in which industrial and commercial distributed renewable energy projects will attract more users.
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