Eskom ends RMIPPPP project budget extensions.

Eskom ends RMIPPPP project budget extensions. Image: Eskom

Eskom ends RMIPPPP project budget extensions

Eskom informs the public that five budget quotes for grid integration in RMIPPPP’s remaining projects expired on 31 December 2023.

Eskom ends RMIPPPP project budget extensions.

Eskom ends RMIPPPP project budget extensions. Image: Eskom

In 2020, DMRE initiated RMIPPPP, addressing South Africa’s energy issues with IPPO as the procurer and Eskom as the buyer, aligned with the Electricity Regulation Act.

The RMIPPPP aimed to secure 2,000MW from various dispatchable technologies. Including gas, solar PV, wind, battery energy storage systems (BESS), and hybrid technologies.

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In 2021, eleven preferred bidders were announced. With seven projects advancing to the construction phase.

Eskom announces expiry of RMIPPPP project budget quotes

“Eskom wishes to inform the public that five budget quotes for the grid integration of the remaining four projects in the RMIPPPP expired on 31 December 2023 and will not be extended further,” said Eskom.

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“This is after several budget quote validity period extensions were requested and granted by Eskom in an effort to assist in ensuring the success of these projects.”

Eskom expressed regret over the expiration of the budget quotes, emphasising the significance of these projects in bringing much-needed additional generation capacity to the grid, alleviating pressure on the power system, and minimising the impact of load shedding.

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Originally slated for commercial close by July 2021, the projects experienced delays and multiple extensions. In July 2023, the IPP Office established the long stop date for commercial close as 31 December 2023, with all applicants acknowledging no further extensions would be granted.

Project extensions end, poses energy stability setback

“Eskom cited its governance process, emphasising the need for projects to be promptly delivered within approved timelines, scope, and costs.”

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Consequently, the affected budget quotes, initially extended for 20 to 30 months, are no longer valid beyond 31 December 2023.

This expiration poses a setback in addressing the country’s energy challenges. Further adding to Eskom’s endeavors to stabilise the power supply.