The minister of energy, Tina Joemat-Pettersson, has announced the successful bidders for government’s first implementation of the coal-based Independent Power Producer Programme (IPPP).
Thabametsi and Khanyisa have been selected as the preferred bidders for the coal-based IPPP. This project, active since 2014, is the first to encourage private energy production using coal. According to the Department of Energy (DOE), bidders will add about 863MW of power to the national grid within the next five years, with initial production planned for 2020. Further than energy production, says Joemat-Pettersson, these bidders will ensure black economic empowerment and majority South African participation.
Joemat-Pettersson claims that while fossil fuels will be the main source of energy for the foreseeable future, commitments to renewable energy have been made through the REIPPP. “As at the end of June 2016, 6 376MW of electricity has been procured from 102 renewable energy independent power producers,” she says. “Of this, 2 200MW of electrical generation capacity from 44 IPP projects has been connected to the national grid.”