Electricity and Energy on allegations concerning Battery Energy Storage Procurement Programme

The Ministry of Electricity and Energy has taken note of the letter by the uMkhonto weSizwe (MK) Party regarding the outcome of the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP). The letter raised questions on the integrity of the procurement process and the conduct of certain participants.

The Minister wishes to reaffirm that the procurement process was conducted under the established frameworks of the Independent Power Producer Office (IPPO), guided by the principles of transparency, competitiveness, and value for money. The process was subject to rigorous legal, technical, and financial due diligence, consistent with national legislation and the prescripts of the Constitution of the Republic of South Africa, including the objectives of ensuring that public procurement fosters inclusive growth for previously marginalised communities, including women and youth.

Since its inception in 2010, the IPPO has undertaken no less than ten bid-windows, attracting R292 billion infrastructure investment in renewable energy projects that reached financial close, with R112 billion recorded as the actual spent on Broad Based Black Economic Empowerment (BBBEE), representing 74% of the total procurement. The local content spent (actual) reached R81.2 billion by December 2024. The shareholding of Black South Africans has now reached 38.1% with 8.8% held by local communities. Over R4 billion has been invested in socio-economic and enterprise development programmes with over 90,000 employment opportunities created in construction and operation stages. In addition, 147.2 million kilolitres water savings was achieved since programme inception, with 124.5 Mton CO2 offset by electricity generated by these projects. These significant investments in South Africa and her people, was achieved without a single finding of fraud, corruption and malfeasance.

Nevertheless, the Minister welcomes robust democratic scrutiny and regards public accountability as a cornerstone of good governance. In this spirit, and in full recognition of Parliament’s oversight role, the Minister will formally write to the Chairperson of the Portfolio Committee on Electricity and Energy to request that the Department and the IPPO be granted an opportunity to brief the Committee on the appointment process and respond to any concerns that may be raised by Members of Parliament.

In addressing the allegations put forward by the MK Party, Minister Ramokgopa affirmed the Department’s commitment to integrity, stating, “We remain committed to ensuring that all procurement conducted under the Department’s auspices is beyond reproach and reflects the highest standards of probity and public trust.” He urged any party with concrete evidence of wrongdoing to submit such information through the appropriate legal and institutional channels.

Furthermore, the Minister emphasised government’s willingness to engage constructively with all stakeholders, including political parties, civil society and industry, in strengthening the integrity and developmental impact of South Africa’s energy programmes.

Enquiries:
Tsakane Khambane
Cell: 082 084 5566

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