SAPVIA | Mantashe announcement on IPP bidders

Solar PV industry body SAPVIA (the SA Photovoltaic Industry Association) has applauded the step-change towards reviving generation capacity procurement from the Department of Mineral Resources and Energy and supports the commitment to deliver a secure energy supply from a diverse range of energy sources as set out in the country’s energy plan.

“We are delighted to see solar PV represented in the RMIPPP preferred bidders announcement and congratulate those members who have worked tirelessly to a successful end. With technological advancement, the reduced costs, the scalability and rapid build times of solar PV projects, solar PV should remain a key technology choice in meeting the country’s capacity requirements,” said Niveshen Govender, SAPVIA COO.

“The emergency procurement round showed that crises can spur innovation and action. While there is still room to better research and understand some of the technology choices of RMIPPPP, we welcome the Minister’s immediate follow-up confirmation of the release of the Renewable Energy IPP Procurement Programme Bid Window 5.

“New possibilities will be realised with both PV and PV-hybrid projects playing a role in South Africa’s energy mix. With the commitment to procure 2000 megawatts from PV solar across Bid Window 5 and 6 this year, there is much to look forward to.”

SAPVIA welcomes and strongly supports the changes announced to the Economic Development requirements of Bid Window 5, which will ensure the participation of black women in the ownership of future projects and procurement rounds as well as a more concerted focus on skills development in the energy sector.

“Over the past decade, SAPVIA has taken the lead in driving skills development across the solar PV value chain. Our focus has been on enhancing the skills of our members to create a world-leading sector that delivers socio-economic transformation and upliftment across South Africa.

“Recently, through our Developing Developers program, in partnership with SAWEA, we are working with current and potential developers to give them access to the knowledge and skills needed to take a renewable energy project from initial planning through to commissioning. This grassroots capacity development is well aligned with the department’s move to increase requirements for black women participation.”

“Local manufacturing and content must continue to be prioritised in all future procurement rounds and SAPVIA will work with members to develop local PV value chains so that our members are ready to meet the new requirements of local content in the forthcoming Requests for Proposals.”

The embedded and distributed generation sector is increasingly important both in diversifying our energy mix and contributing to energy security. SAPVIA is encouraged by the DMRE’s moves to enable increased embedded generation and is therefore seeking clarity on the statement on increasing the distributed generation licence exemption cap, and we will continue to engage with our counterparts in government to clarify the details and legislation required for self-generation as well as the licensing and registration regime for embedded generation.

Niveshen Govender

“The Minister has responded to the calls of industry to act quickly and restart renewable generation capacity and we look forward to solar PV playing a role in delivering energy security and powering South Africa’s economic recovery.” Niveshen Govender

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IPP & PPA Conference at African Energy Indaba | Do not miss the panel at 11:30 on innovative tariff systems

PANEL 2 – INNOVATIVE TARIFF SYSTEMS TO DELIVER SUSTAINABLE PRICING AND REVENUE

  • How can innovation in market design and use of new technologies serve to balance the price that African consumers can afford with the revenue and returns needed to satisfy the shareholders of energy supply businesses?
  • Can Africa move to cost-reflective tariffs or are subsidies still necessary and, if so, how can they be managed?

MODERATOR:       Wendy Green: DRA Global

PANEL              

Adero Okudo: Milele Energy

Edirin Aghoghovbia: AMMP

Joshua Ogwal: Ligomarc Associates

Zahid Ahmed Hassen: ARCH Emerging Markets

Please find the rest of the programme for the 4 and 5 March here: https://greeneconomy.media/wp-content/uploads/2021/03/IPP-PPA-Draft-Programme-v4-002.pdf

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Evolution II Fund partners with Building Energy’s management in the buy-out of its African business

Building Energy’s management, in partnership with Inspired Evolution’s Evolution II Fund, has successfully closed a buy-out of Building Energy’s Africa and Middle East business to launch the newly branded Red Rocket. 

The new joint venture will see the re-capitalisation and positioning of Red Rocket to become one of Africa’s leading emerging renewable energy independent power producers (IPPs). Evolution II holds a majority shareholding in the reconfigured IPP platform, It is advised by Inspired Evolution, an Africa-focused investment advisory firm that specializes in clean energy infrastructure and resource efficiency investments.

The ground-breaking partnership brings together two seasoned professional teams with deep sector experience and proven renewable energy project development and auction conversion success to ramp up Red Rocket’s activities across Africa. The buy-out deal leverages the resources of multiple Development Finance Institutions (DFIs) and international investors together with local leading South African investment institutions active across Africa. They are secured via Inspired Evolution and Red Rocket’s existing relationships, to strengthen and forge stronger partnerships for its African expansion.

Red Rocket’s management skills set offers unique agility and differentiated bid strategies with best-in-class demonstrated renewable energy bid success and subsequent implementation of the projects.

The team combines proven renewable energy technology selection with technical project development optimisation and innovation to offer full integration through its IPP platform solutions. The hands-on active value creation from Inspired Evolution complements Red Rocket’s capabilities to deliver on its African IPP expansion plans.

Red Rocket is an integrated renewable energy IPP that develops, designs, constructs operate and owns utility-scale grid-connected renewable energy projects (wind, solar, hydro, and biomass). It also has operations in multiple countries across Africa. Founded in 2012 and headquartered in Cape Town, the company now known as Red Rocket was originally set up as Africa and the Middle East business unit of Building Energy’s global operations.

Its portfolio comprises 377 MW of projects in operation, under construction, and awarded under public and private bids.

The Group is also developing a portfolio in excess of 2 GW of additional best-in-class wind, solar, hydro and biomass projects to bid under future rounds of South Africa’s renewable energy independent power producer procurement program (REIPPPP). This also includes other procurement programs across various African countries.

Matteo Brambilla, Chief Executive Officer of the Red Rocket Group, said: “We are pleased to be partnering with Inspired Evolution. They bring sector expertise and proven project finance return performance to augment our efforts in building Red Rocket into one of Africa’s premier long-hold utility-scale IPP platforms offering the least-cost clean and reliable energy to African customers. Our auction successes under the REIPPPP in South Africa and in select countries across Africa are a testament to the innovation we continually apply to our renewable energy public and private bid strategies.”

Christopher Clarke, Managing Partner at Inspired Evolution, said: “Backing a commercially-astute professional team with demonstrated bid success to accelerate the deployment of utility-scale clean energy infrastructure in targeted countries across Africa, contributes to our mission. We share the vision with management for Red Rocket to continue to improve its competitiveness with agility and innovation to become a credible high-impact IPP platform of choice.”

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