South Africa’s renewables era revived with Bid Window 5

On 28 October, Minister Mantashe announced the preferred bidders for Bid Window 5 of the REIPPPP program. The wind and solar capacity on offer were 3.5 and 4.5 times oversubscribed, respectively, and 25 independent power producers committing to build 2,583 MW of new capacity were identified to sign 20-year PPAs and interconnect their projects by April 2024. This note offers insights into the winning bidders' possible winning strategies and the drivers behind strikingly low proposed prices. It notes the risks facing these proejcts due to supply chain constraints and high commodity prices. Finally, it delves into the dynamics of South Africa's fast-changing power sector landscape as the country is committing to accelerate its energy transition efforts with support from a bloc of advanced economies.