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The National Radioactive Waste Disposal Institute (NRWDI) is moving ahead with preliminary designs for a so-called Centralised Interim Storage Facility (CISF) at the Vaalputs site in the Northern Cape to store spent fuel arising from Eskom's Koeberg nuclear power station.

While the South African Nuclear Energy Corporation, or Necsa, currently holds the licence to operate the Vaalputs radioactive waste disposal facility, NRWDI is in the process of seeking to have the licence transferred.

This, owing to the fact that NRWDI has the statutory mandate to manage radioactive waste disposal in South Africa.

Depending on regulatory approvals, NRWDI anticipates that the Vaalputs Nuclear Installation Licence could be transferred in July, which will also generate revenue for NRWDI in the form of waste disposal fees from radioactive waste generators, in particular Necsa and Eskom.

The revenue, which is estimated at about R50-million over the coming three years, will be used for the Vaalputs low-level waste disposal function.

However, CEO Riedewaan Bakardien told the Parliamentary Portfolio Committee on Electricity and Energy that NRWDI was also progressing plans for the development of a CISF to be used for the long-term storage of Koeberg's spent nuclear fuel from 2030 onwards.

Koeberg's used-fuel assemblies are currently either in spent-fuel pools at units 1 and 2, or in dry storage casks on site and their transfer to an offsite disposal facility has been described as being urgent for some years.

That urgency has increased in light of the fact that Unit 1 received a licence to operate for a further 20 years to July 2044, while Unit 2 is also seeking approval to have its licence extended for 20 years.

Bakardien said the above-ground CISF will provide the interim solution for high level radioactive waste storage in the absence of a deep geological repository, which was currently planned for development only by 2065.

An environmental-impact assessment was under way and NRWDI had awarded an engineering contract in March for the finalisation of a preliminary design.

Bakardien said the cost of the project would depend on the final design, but reported that previous estimates pointed to capital expenditure of R1.9-billion for the CISF.

A funding plan was still being developed and NRWDI was working with both Eskom and the Development Bank of Southern Africa to finalise the plan.

"We are mindful of the importance of public consultation in the site selection process and therefore want to assure all stakeholders that NRWDI will comply with all the requirements of the National Nuclear Regulator Act and National Environmental Management Act in terms of public participation.

"Based on preliminary site investigations done in the early 1990s the Vaalputs site is a candidate site for the establishment of the above ground off-site Centralised Interim Dry Storage Facility and Deep Geological Repository," Bakardien told lawmakers.

Eskom has confirmed that it has a 5 GW pipeline of so-called 'repowering' projects at various stages of development on the sites of six coal power stations, including Komati, which has already stopped operating and where 122 MW of solar PV and 150 MW of battery storage is under development.

Addressing the most recent Presidential Climate Commission (PCC) meeting, CEO Dan Marokane said that solar PV, wind and battery storage, or BESS, project development work was also under way at Grootvlei, Arnot, Camden and Hendrina, while a gas-to-power project was being assessed at Kriel, alongside PV and BESS.

Eskom is targeting commercial operation before 2030 for most of the projects, as it seeks to integrate cleaner generation into its coal-heavy mix and reduce its overall emissions by 40% by the same date.

"Just Energy Transition (JET) strategies have been approved for Hendrina, Camden, Grootvlei, and are advanced for Arnot and Kriel," Marokane said, adding that the projects would be pursued in partnership with the private sector.

However, he also told the commissioners that the utility was assessing various technologies to help its existing coal stations, which are currently operating under an exemption from the country's minimum emissions standards, meet legislated air-pollution limits. These included coal cofiring with ammonia, so-called high-efficiency, low emission solutions and wet and dry flue gas desulphurisation.

The projects are at various stages of development, and beside the 122 MW of solar PV and 150 MW of BESS at Komati, include:

195 MW of solar PV and 150 MW of BESS at Grootvlei;

800 MW of solar PV, 200 MW of BESS and 168 MW of wind at Arnot;

680 MW of solar PV at Camden;

587 MW of solar PV at Hendrina; and

800 MW of solar PV, 200 MW of BESS and 1 000 MW of gas-to-power at Kriel.

Having secured regulatory and environmental approvals for the Komati projects, Eskom is aiming to award contracts for a 72 MW solar PV project and the 150 MW BESS project at Komati during 2025.

The Komati projects were receiving priority in light of criticism relating to the fact that the power station was retired before the repowering projects were ready to proceed; a lesson that Marokane said had been transferred to other sites where more upfront preparatory work was being carried out ahead of plant stoppages.

A report published this month by the PCC titled 'Komati's Just Transition: Assessing progress, challenges, and lessons' concluded that greater effort should be made to prepare repowering and repurposing projects ahead of decommissioning to improve sequencing, community engagement and to designate responsibilities.

"It is clear from talking to stakeholders that implementing a just transition is difficult and time-consuming under the best conditions, but it is even more challenging within the context of high levels of poverty, unemployment, and inequality," the report states, while reaffirming the PCC's commitment to supporting JET initiatives at Komati.

Meanwhile, Eskom's confirmation of its repowering project pipeline came days after the June 11 approval of an update to South Africa's Accelerating Coal Transition investment plan by the Climate Investment Funds' (CIF's) Clean Technology Fund Trust Fund Committee.

CIF FUNDING

In seeking approval from the World Bank-linked fund, Eskom modelled that it could meet its 65-million-ton to 72-million-ton CO2-equivalent emissions reduction target under a delayed coal decommissioning schedule, which was needed to unlock the CIF funds. This, after Eskom rescheduled decommissioning of the Camden, Grootvlei, and Hendrina power stations from 2027 to 2030.

Nevertheless, it was unclear until June 11 whether this would be sufficient to convince the committee, including its US representatives, particularly in light of America's withdrawal, under President Donald Trump, from supporting South Africa's Just Energy Transition Investment Plan (JET-IP).

With the approval secured, however, up to $2.6-billion c...

Engineering News editor Terence Creamer discusses big changes in the electricity sector, linked to the Electricity Regulation Amendment Act; the vertical separation of the transmission business from the rest of Eskom; the National Transmission Company of South Africa's future rol

President Cyril Ramaphosa has again underlined the industrialisation potential of green hydrogen, and has stressed that South Africa will used its G20 Presidency as well as its participation in the upcoming G7 meeting in Canada to call for a prioritisation of just energy transitions as engines of economic growth and social development.

In an address to the Africa Green Hydrogen Summit in Cape Town, Ramaphosa described green hydrogen is an anchor for industrial transformation and infrastructure investment, as well as a bridge to a new export industry for African countries.

However, he said its potential could be realised only if prevailing impediments to the growth of the industry were addressed.

Besides the role of African governments in creating supportive regulations and clear standards, the President expressed concern about skewed global investment patterns and the high cost of capital for African projects.

"A number of green hydrogen projects on our continent are not being initiated or reaching financial close, due to cost of capital and perceptions of risk."

H2GLOBAL'S AFRICA LOT COMMENDED

Ramaphosa, thus, commended the German government's decision to include a specific allocation for Africa in its second H2Global auction, which was launched earlier this year.

The African lot, he said, will guarantee offtake for successful projects on the continent.

The auction comprises five lots and includes a budget of at least €484-million apiece for four regional projects in Africa, Asia, North America, and South America and/or Oceania.

Suppliers bidding in the regional lots are allowed to offer renewable hydrogen, ammonia, or methanol, all of which must be delivered to a designated hub in Germany from 2028.

Ramaphosa also stressed the need for a shift from ideas to commitments, echoing Western Cape Premier Alan Winde's opening remarks stating the need to move from "PowerPoints to gigawatts".

Ramaphosa's speech was followed by a series of signing agreements, including an inaugural $20-million investment by the SA-H2 Fund to support the development of the one-million-ton-a-year Hive Hydrogen Coega Green Ammonia Project, in the Eastern Cape.

Electricity and Energy Minister Dr Kgosientsho Ramokgopa also emphasised the potential of green hydrogen to "drive industrial growth and localisation", using the occasion to formally launch the South African Renewable Energy Masterplan, following its recent approval by Cabinet.

"The masterplan aims to leverage South Africa's growing renewable-energy demand, including for green hydrogen, to stimulate upstream and downstream industrial development across solar PV, wind, battery storage, electrolysers, and fuel-cell technologies.

"This includes building domestic capability in component manufacturing, assembly, and engineering services," Ramokgopa said.

The Africa Green Hydrogen Report was also released at the summit, synthesising more than 35 studies from South Africa alone.

Produced with the support of the GIZ, the report offers detailed assessments on port readiness, cost competitiveness, domestic and export demand modelling, renewable-energy and transmission capacity, critical minerals linkages, certification frameworks, job creation potential, and socioeconomic impacts.

"[The report's] message is unequivocal: Africa is not short of knowledge. Africa is ready to move from pilot to pipeline, from strategy to scale," Ramokgopa averred.

However, he warned that the window for Africa to participate in shaping the rules of the green-hydrogen market was narrowing.

"Other regions are moving fast, with public subsidies, regulatory incentives, and long-term offtake strategies.

"If we delay, we risk importing technologies, importing skills, and once again exporting unprocessed potential."

The National Transmission Company South Africa (NTCSA) has indicated that it is aiming to have the initial phase of the South African Wholesale Electricity Market, also referred to as the SAWEM, operating by April 1 next year, should it have received regulatory approval to do so.

In a presentation to the Portfolio Committee on Electricity and Energy, NTCSA's Andrew Etzinger reported that it had applied to the National Energy Regulator of South Africa (Nersa) for a Market Operator licence.

He added that significant progress had also been made in finalising the Market Code, which will define the rules of engagement and qualifying criteria for participants.

The Market Operator is being established in line with the Electricity Regulation Amendment (ERA) Act, which outlines a five-year period in which a fully independent Transmission System Operator (TSO) should be established as part of a transition to a competitive market structure.

In the interim, the NTCSA is operating as an independent subsidiary of Eskom with its own board, led by chairperson Priscillah Mabelane and interim CEO Segomoco Scheppers, with an executive search having been recently initiated to find a permanent CEO.

The NTCSA is responsible for operating and maintaining the existing physical transmission network, as well as expanding the grid in line with a Transmission Development Plan that envisages the roll-out of 14 500-km of new powerlines and 133 000 MVA of new transformers by 2034.

It is also responsible, however, for establishing the independent TSO and setting up a Market Operator to oversee a non-discriminatory trading platform for various physical, financial and regulated markets, as well as the Market Code.

Etzinger told lawmakers that the latest draft of the Market Code had taken account of written comments on the draft code published in April 2024, as well as inputs received during ten hybrid workshops that had involved some 300 participants.

Describing the latest draft as a "good product", Etzinger said it would be shared at a final workshop to be held during June, before being submitted to Nersa, which would be the ultimate custodian of the code, for its approval.

Nersa was expected to host public hearings on the Market Code before finalising the framework and Etzinger indicated that changes would probably be made to the code in future as lessons emerged during the initial phase of operations.

Nevertheless, Etzinger said the NTCSA had set an "aspiration" for having the market "up and running" by April 1, 2026, but stressed that operationalisation would proceed only after Nersa's approval.

"The electricity market is coming … and we are very excited from the NTCSA point of view to be part of the development, introduction and, ultimately, the running of the market," he added.

Its launch, he said, would represent a dramatic change in the electricity landscape that had remained relatively constant in South Africa for 102 years.

The market would continue to evolve toward full competitiveness with the aim of levelling the playing field for generators, increasing efficiency, and providing consumers with a choice in their provider, be it their existing distributors or future retail electricity traders.

Eskom had been operating an internal 'Dynamic Energy Market' since October 2019, whereby its power stations bid energy into the market to be "bought" by Eskom Distribution.

"It's a simulation exercise to build experience and it has gone well," Etzinger said, reporting that the intention now was to open it up to the utility scale independent power producers as a way of further stress testing its functionality and building up trading skills.

A SAWEM School would be launched together with the Wits Business School on June 24 to expose more industry participants to the market concept and to how trading works, with course material having been developed, alongside a simulation tool.

"The market will be introduced in a responsible manner over time to ensure that se...

South Africa has requested that the US refrain from raising tariffs above the prevailing 10% level should negotiations on a new trade framework not be concluded by July 9, when a 90-day pause on "reciprocal tariffs" of 30% against South African exports is due to expire.

On April 2, President Donald Trump announced that South Africa faced tariffs of 30% when unveiling 'liberation day' tariffs on all of America's trading partners.

Trump then reduced the tariffs to a 10% base rate on April 9 for 90 days, with the expectation that countries use the period to make proposals that addressed the US's trade-deficit concerns.

However, South African steel, aluminium and automotive exports continue to face 25% tariffs as imposed under Section 232 of America's Trade Expansion Act.

In a briefing to lawmakers, Trade, Industry and Competition Minister Parks Tau said there was currently uncertainty as to what decision the US would make on July 9 and that South Africa was exposed to both direct and indirect trade and growth risks as a result of global developments.

Department of Trade, Industry and Competition (dtic) deputy director-general for trade Ambassador Xolelwa Mlumbi-Peter said that, given that the US was engaging in a number of trade talks, it was unlikely that South Africa and the US would have finalised their negotiations by July 9.

"So we have put forward that, while the negotiations are ongoing, it would be important that the tariffs applicable to South Africa should be lower, or at least not more than the 10% level, and that the preferential market access for key value-added products be preserved," she explained.

In addition, South Africa has requested that its Africa Growth and Opportunity Act preferences that still prevailed through the Most Favoured Nation duty also be maintained during the period of the negotiations.

Mlumbi-Peter told the Portfolio Committee on Trade, Industry and Competition that, following the Oval Office meeting between Trump and President Cyril Ramaphosa, South Africa had put forward a proposal for a framework agreement, but that the details still had to be negotiated.

The proposal was premised on addressing not only America's concerns in relation to its trade deficit, but doing so "in a manner that meets South Africa's development objectives".

CURRENT OFFER

She also confirmed to lawmakers that the following elements had been included:

The procurement of gas from the US, alongside investment by the US in gas infrastructure in South Africa and technology cooperation to unlock domestic gas production;

Addressing agricultural market access from both sides, including the US's concerns in relation to beef, pork, poultry and blueberries and South African market access for mangos, litchis, citrus and avocados;

Promoting two-way investment in critical sectors;

Cooperation on critical minerals that still leveraged South Africa's minerals processing capabilities;

Building on existing cooperation between development finance institutions from both countries;

Engaging on tariffs in a manner that did not undermine regional integration and protected the Southern African Customs Union; and

Investigating greater cooperation on digital trade.

Tau emphasised the significance of the trading relationship with the US, speaking ahead of a presentation showing that South African exports of goods to the US stood at $14.9-billion in 2024, while its imports of goods from the US stood at $5.8-billion.

It also showed that the US enjoyed a trade surplus in services, having exported $3.52-billion to South Africa last year, while South African services exports stood at $2.19-billion.

Tau said the uncertainty over trade was weighing on global growth and would also affect South Africa's immediate growth prospects.

INCLUSIVE GROWTH PATH

However, he said that internal factors also needed to be addressed in light of the country's ongoing "lacklustre" growth performance and outlook.

He reported that a revised industrial strategy was under ...

South African independent power producer (IPP) Mulilo has emerged as a leading battery storage project sponsor following three public procurement bidding rounds. It is participating in 12 of the 18 projects awarded, which together have a capacity of 1 134 MWh/4 536 MWh, representing a market share of 65%.

The Cape Town-based IPP has taken the lead in nine of the projects in the North West, Free State and Gauteng provinces, and is partnering with EDF in three Northern Cape projects that are currently under construction and have a capacity of 257 MW/1 028 MWh.

Chief development officer Stuart MacWilliam tells Engineering News that Mulilo's immediate focus is on completing construction of the projects already under way while advancing the nine other projects to financial close.

The nine projects being led by Mulilo were awarded during the second and third bid windows of government's Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP) and have a combined investment value of more than R14.6-billion.

The latest four projects, awarded on May 30, will all be built at pre-selected substations in the Free State, and include:

The 123 MW/492 MWh Erfdeel BESS, which will be built at a cost of R 1.75-billion;

The 123 MW/492 MWh Retreat BESS, which has an investment value of R2.02-billion;

The 124 MW/ 496 MWh Bloemhoek BESS, which will cost R1.79-billion; and

The 123 MW/492 MWh Vanilla BESS, with an investment value of R1.79-billion.

MacWilliam confirms that all of the projects are using lithium-ion batteries, which will likely be sourced from China, but will have combined local content of R1.3-billion during construction and R1.46-billion during operations.

The Mulilo projects awarded during the second bid window, meanwhile, have a combined investment value of R7.68-billion and are also advancing to commercial close, having been named as preferred bids in December.

These five projects are to be located near substation sites in Gauteng, the Free State and the North West provinces and have a combined capacity of 384 MW/ 1 536 MWh.

The projects awarded across all three bidding rounds have 15-year power purchase agreements (PPAs).

MacWilliam says the engineering, procurement and construction, as well as the operations and maintenance contractors, will be finalised through a competitive closed bidding process to be conducted in the coming months.

Mulilo itself is also scaling up as its asset footprint expands: "We have grown from 43 staff at the time of the transaction to 163 now and we're still growing."

The company attributes its recent success in the public procurement round largely to the financial firepower that has been introduced through the shareholding of Copenhagen Infrastructure Partners, which is the source of the IPP's direct equity contributions, as well as a provider of "deep international expertise".

Therefore, despite its rapid growth, Mulilo is content with its current capital structure and is not currently considering a listing on the JSE.

"In the immediate to short term, the focus is to successfully complete construction for the projects awarded under Bid Window 1 of BESIPPPP and progress towards financial close for projects awarded under rounds 2 and 3.

"These efforts are in line with Mulilo's ambition to deliver 5 GW of generation by 2028," MacWilliam says.

Mulilo currently operates 420 MW of wind and solar projects, with 764 MW under construction and more than 1 500 MW targeted for financial close by December.

In response to some negative political party commentary following the award of the latest battery storage projects, MacWilliam asserts that Mulilo has always been committed to local ownership generally and black ownership specifically as required both for government and private PPAs.

"We are proud of our South African heritage and are grateful to have shareholders that are supportive of our growth agenda and ambitions to power the future of South Africa.

"Our projects will always hav...

JSE-listed PPC on Monday reported a step change, ahead of expectations, in key financial metrics such as its margins, profitability and cash generation for the year ended March 31, which reached its highest levels since the 2018 financial year.

Through its 'Awaken the Giant' strategic turnaround plan, the company rebuilt its foundations and changed its strategy, action and delivery, resulting in double-digit increases in earnings before interest, taxes, depreciation and amortisation (Ebitda) and free cash flow.

During the year under review, Ebitda increased 28% to R1.59-billion, Ebitda margin expanded 3.8 percentage points to 16.1% and free cash flow from continuing operations surged 306% to R1.05-billion from the R260-million reported in the prior year.

PPC's earnings a share and headline earnings a share increased from a respective 6c and 19c in the prior year to 32c and 40c respectively in the 2025 financial year.

Profit before tax increased to R774-million during the year under review, from R233-million in the prior year, while profit after tax increased to R466-million from R88-million.

The cement producer's group revenue decreased 1.9% to R9.87-billion owing to a 6.7% reduction in Zimbabwe's revenue, while PPC's South Africa and Botswana group revenue remained stable with 0.6% increase.

"The 2025 financial year results are remarkable, considering there was not any significant growth in the markets in which PPC operates," said PPC CEO Matias Cardarelli.

"These results are the highest since the 2018 financial year, considering the current group portfolio. Additionally, we have resumed ordinary dividend payments from the South Africa business segment, which has not been declared since 2016, and there was a record dividend from Zimbabwe," he continued, adding that this year's performance is not a result of one-off cost-cutting, but rather the outcome of operational improvements, the introduction of best practices and a focus on core business drivers.

Over the past year, amid a fundamental reset of the organisation, PPC had focused on its core competencies, turning previous gaps into opportunities.

The company now operates with "clarity, confidence and direction", he said during the company's results presentation on Monday.

The South Africa and Botswana group's turnaround execution delivered strong results and margin expansion despite a muted market.

The segment's cement volumes during the year ended March 31 decreased 2.3%, while revenue increased 0.6% to R6.75-billion.

Ebitda increased 31% to R744-million and the Ebitda margin increased 2.6 percentage points to 11%.

The PPC Zimbabwe operations recorded a 5.5% decrease in cement volumes during the year under review, with revenue decreasing 6.7% to R3.12-billion.

However, Ebitda increased 26% to a record R849-million and the Ebitda margin increased 7 percentage points to 27.2%.

The board declared an ordinary dividend of 17.6c a share - up from 13.7c a share last year - comprising a dividend of 1.9c a share from the South Africa and Botswana group, and a dividend of 15.7c a share received from Zimbabwe.

"We have set a new direction for sustainable growth and value creation for the short-, medium- and long-term," Cardarelli continued.

While the 2025 financial year was initially "year zero" of PPC's turnaround strategy, the combined effect of closing the gaps and accelerating the turnaround delivered substantial results ahead of schedule.

"Notwithstanding the significant margin and cash flow improvements in the current year, opportunities remain to unlock additional value. Incremental improvements are anticipated in the 2026 and 2027 financial years from the turnaround efforts."

The foundations that have been, and will continue to be, built will deliver sustainable growth, he assured, noting that the focus will continue to be on unlocking internal value.

"Ultimately, our competitiveness strategy will position PPC even better once infrastructure projects begin to materialise."...

The South African government has provided an update on the timelines for the launch of the inaugural procurement of independent transmission projects (ITPs), as well as additional insight into the design of the so-called Credit Guarantee Vehicle (CGV) being set up to derisk the programme for investors and government itself.

In a joint statement, the Department of Electricity and Energy (DEE) and the National Treasury announced that the prequalification tender, or request for qualifications (RFQ), would be issued by the end of July to "shortlist capable, experienced, and financially sound bidders to proceed to the next stage of the ITP procurement process".

This RFQ step will be followed by the release of a formal request for proposals by end of November and is being undertaken to "safeguard the integrity and bankability of the ITP programme".

The statement also confirmed that the first phase of ITP procurement would be managed by the Independent Power Producer Office, which has hitherto overseen the procurement of new generation capacity, mainly in the form of wind and solar.

On March 28, Electricity and Energy Minister Dr Kgosientsho Ramokgopa Gazetted a Ministerial Determination under Section 34 of the Electricity Regulation Act opening the way for the procurement of 1 164 km of 400 kV powerlines and 2 630 MVA of transformers across seven projects in three provinces, including the Northern Cape, the North West province and Gauteng.

Having closed on May 22 the receipt of submissions on draft Electricity Transmission Regulations, the statement also confirmed that the DEE was currently reviewing the comments before finalising and promulgating the final version.

The draft regulations placed emphasis on creating a transparent mechanism for the National Transmission Company South Africa to fully recover costs through transmission supply agreements, and also emphasised value-for-money procurement while outlining risk allocations.

The statement also provides more detail on the CGV that is being developed in collaboration with the World Bank to support the mobilisation of private and development capital, including through the Just Energy Transition Partnership (JETP), without further burdening the national accounts through guarantees.

"The CGV will be incorporated as a private company in South Africa, operating in the form of a non-life insurance company with all the required licences and approvals, and regulated by the Prudential Authority.

"A draft Information Memorandum (formal offer via private placement of shares in the CGV) which provides granular details on how the CGV will operate has been developed and will be shared with our development partners.

"Following the sharing of the Information Memorandum, the team will in July 2025 engage in one-on-one discussions with the identified development partners who expressed interest in participating in phase one of the CGV."

The statement said that it was envisaged that the CGV would become operational in 2026.

The National Treasury and the DEE reaffirmed that a multi-phase ITP roll-out was envisaged and that government intended to leverage the procurement programme to support industrialisation.

"The ITP is not just an infrastructure intervention, it is an economic stimulus, an industrial enabler, and a symbol of South Africa's readiness to partner.

"We invite developers, manufacturers, financiers, and technology leaders to partner with us, to invest, to build, and to power South Africa's energy future towards national growth and resilience," the statement reads.

South Africa's Independent Power Producer Office (IPPO) has confirmed that it is undertaking a comprehensive review of the country's public procurement framework for independent power producers (IPPs), which has hitherto been dominated by renewable energy.

The model was once lauded internationally but is currently facing significant headwinds, with analysis by the University of Cape Town's (UCT's) Power Futures Lab showing that of the 14 800 MW tendered since 2020, only 7 343 MW has been awarded, while less than 20% has reached financial close.

The IPPO tells Engineering News that the review is being conducted in line with the Energy Action Plan and will guide the design of future bidding rounds for IPP generation capacity, including the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

The IPPO has not provided details on the terms of reference, but indicates that the review will consider the lessons learnt from recent bid windows, as well as feedback from Electricity and Energy Minister Dr Kgosientsho Ramokgopa's engagements with the market during 2024.

"Inputs into the review are also drawn from transaction advisers that have been involved in previous bid windows, and cooperating partners on international best practices," the IPPO tells Engineering News, while noting that timelines for the next bid windows have not yet been determined.

The REIPPPP is still regarded as a success overall, having facilitated investments of R292-billion, a steep decline in tariffs since the first few bidding rounds, and the construction of over 8 000 MW across 111 wind and solar projects since 2011, with a further 21 projects with a combined capacity of more than 3 000 MW advancing toward commercial close.

However, recent bidding rounds have faced serious problems, including Bid Window 5 where several projects were unable to close having been bid at tariffs that could not be sustained as a result of the spike in energy prices associated with Covid supply disruptions and Russia's invasion of Ukraine.

Then, Bid Windows 6 and 7 were rocked by South Africa's grid constraints and an absence of an approved curtailment framework, which could have unlocked immediate capacity for more than 3 000 MW of mostly wind investments.

Thus, all the industry experts and practitioners canvassed by Engineering News expressed support for the review, as well as the need to sustain a public procurement mechanism. This, despite recent changes to the market, as well as still nascent moves towards the establishment of the competitive market structure.

UCT Power Futures Lab Emeritus Professor Anton Eberhard argues that all available routes to market are still required, including centrally run auctions which can mobilise large investments.

"Given the tens of gigawatts of investment needed over the next decade, as a large chuck of Eskom's coal fleet is decommissioned, it would be prudent to keep centrally run auctions going," Eberhard says.

"The private power purchase agreement market for large corporates will be saturated soon, the South African Wholesale Electrify Market will take time to mature, the growth of merchant greenfield investments will be cautiously slow, and we're unlikely to see any subsidies to incentivise a large enough breakthrough in rooftop solar feeding back to the grid," he adds.

Likewise, Mike Levington, of Navitas Holdings, describes public procurement as important to safeguard the energy system over the medium-term, as those market participants that have enjoyed dominance in a centrally planned and managed electricity sector adjust to a competitive environment.

"Also, even though the commercial customers might be content to procure their own energy and capacity needs from IPPs, ensuring grid system stability will most likely require national procurement," Levington adds.

EE Business Intelligence MD Chris Yelland adds that the process under way is "evolutionary".

Therefore, Yelland believes that public procurement will c...