The Department of Mineral Resources and Energy has officially kicked off the process for procuring 2000 MW of emergency power, with a request for proposals it says it expects to attract some R40 billion in investment.
The Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) is set to address an immediate shortfall in supply that is contributing to ongoing load shedding.
Government has issued a Request for Proposals (RFP) seeking bidders that can commit to job creation, socio-economic development, supplier and enterprise development, and skills development.
Broad-based black economic empowerment initiatives will be supported, the DMRE said in a statement on Saturday.
All power procured under the programme is expected to be fully operational by no later than June 2022.
The department said the emergency procurement programme was a “direct response to the short-term electricity supply gap” noted in the Integrated Resource Plan of 2019 and that it aimed not only to alleviate current electricity supply constraints, but also to reduce the use of diesel-based generators.
“The programme seeks to procure 2000 MW from a range of energy sources and technologies,” the statement said.
It added: “This RFP is expected to attract investment in the region of R40 billion.”
Late in July, government said that documentation inviting bids would be released by the latest at the beginning of August.
Fin24 recently reported that according to state research institute the CSIR, 2020 could be the worst year yet for load shedding unless key decisions are taken to stem the energy crisis. By 2022, the energy shortfall was expected to reach 4500 GW/h, the institute added.