The Programme is aimed at emerging, smaller power developers (less than 5 MW) with an emphasis on South African and SME participation in Projects. In order to give South African power generation equipment manufacturers, who may not have international certification, the opportunity to supply equipment for the Projects, a Bidder may elect whether or not to use internationally certified equipment in its Project under the Programme.
South Africa has a high level of Renewable Energy potential and presently has in place a target of 17 800 MW of Renewable Energy by 2030 under the Integrated Resources Plan. In 2011, the Minister determined an initial 3 725 megawatts (MW) to be generated from Renewable Energy sources and pursuant to that has added a further 9 500MW through two new determinations bringing the total to 13 225 MW. The IPP Procurement Programme was designed so as to contribute towards the target of 17 800 MW megawatts and towards socio-economic and environmentally sustainable growth, and to stimulate the renewable industry in South Africa. The IPP Procurement Programme was launched by the Department in August 2011. Since the launch of the programme in 2011, the Department has procured 6 376 MW across 102 projects in the Large and Small Projects IPP Procurement Programme.
In the Determination, the Minister allocated an initial 100 MW of the 3725 MW to the procurement of small projects which has since been expanded to 400 MW which individually have a maximum contracted capacity of 5 MW. The projects with a generation capacity of not less than 1 MW and not more than 5 MW utilising the following technologies shall be considered as qualifying technologies for selection under this Small Projects IPP Procurement Programme: