The Department of Mineral Resources and Energy DMRE has again extended the bid submission date for registered bidders under Bid Window 3 of the Battery Energy Storage Independent Power Producer Procurement Programme RFP BESS BW3 to November 28.
Launched on March 28 under South Africas 2019 Integrated Resource Plan IRP2019, Bid Window 3 seeks to procure 616 MW 2 464 MWh of battery energy storage. Originally set for July 31, the bid submission date was first extended to October 31 and is now further delayed to allow bidders more time for compliance with updated project experience requirements.
The RFP contemplates a clarification process following its release to the market where the department may, as appropriate, issue briefing notes to amend the programme.
Preferred bidders are to be announced about three months after the submission date. The commercial close is anticipated six months later, followed by the financial close a month later.
Once selected as preferred bidders, participants must obtain a budget quotation from Eskom to finalise project agreements and secure grid connection, says the Independent Power Producer Procurement Programme Office.
For the third bidding round, the DMRE specified several technical criteria for battery storage technology. Notably, a requirement for four hours of discharge capacity, delivering between 123 MW and 124 MW. Additionally, projects must achieve at least 70 Round Trip Efficiency, which will be tested annually.
In a recent media briefing on the Independent Power Producers Programme, Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa, highlighted battery energy storages transformative role in maximising renewable energys potential by capturing surplus generation for use during peak demand when wind and solar power are insufficient.
He described the 1 744 MW of battery energy storage being procured in Bid Windows 1, 2, and 3 as incremental progress. He expressed optimism that large-scale storage could be achievable as the country gained expertise and efficiency in battery deployment.
To date, two projects from Bid Window 1 have reached commercial close, and Bid Window 2 is under evaluation, with 31 bids submitted for consideration.
Sign up to receive our newsletters and magazine free - click here.
