Department Defends Integrity of Battery Storage Bidding Amid Political Scrutiny

The Department of Electricity and Energy has reaffirmed its commitment to transparency, fairness, and constitutional compliance in the awarding of contracts under the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP). This reassurance comes in the wake of questions raised by a political party in Parliament regarding the selection of five preferred bidders under Bid Window 3 of the programme.

Minister Kgosientsho Ramokgopa responded firmly to the allegations, emphasizing that the procurement process adhered strictly to established procedures governed by the Independent Power Producer Office (IPPO). The process, he said, was executed in line with the principles of transparency, competitiveness, and delivering value for public investment.

“The procurement process was conducted under the established frameworks of the IPPO and was subject to rigorous legal, technical, and financial due diligence,” the Minister said.

“This was in full compliance with national legislation and the Constitution of the Republic of South Africa, with specific emphasis on promoting inclusive economic growth, particularly for historically disadvantaged individuals, women, and youth,” he added.

IPPO's Track Record and BESIPPPP’s Strategic Role

The IPPO, which manages public-private energy procurement processes in South Africa, has overseen ten bid windows since its establishment, unlocking a total of R292 billion in infrastructure investment. BESIPPPP, in particular, is part of South Africa’s strategic shift toward renewable energy and the incorporation of battery storage as a mechanism to stabilize and modernize the national grid.

The third bid window of the BESIPPPP attracted considerable interest, reflecting investor confidence in the country's evolving clean energy sector. The preferred bidders selected are expected to help alleviate pressure on the national power supply while advancing the country's climate and energy goals.

The Department underscored the integrity of these results, citing a robust history of financial discipline and clean administration.

“Since the inception of IPPO-led procurement programmes, there has not been a single finding of fraud, corruption, or malfeasance,” the department said.

Transformation and Economic Inclusion at the Forefront

The procurement framework under the IPPO has consistently prioritized Broad-Based Black Economic Empowerment (BBBEE), job creation, and community development. The Department reported significant progress in these areas:

• R112 billion has been spent on BBBEE initiatives, representing 74% of total procurement.

• R81.2 billion was spent on local content as of December 2024.

• 38.1% of shareholding in awarded projects is held by Black South Africans.

• 8.8% of ownership is in the hands of local communities.

• More than 90,000 jobs were created during construction and operational phases of projects.

• R4 billion was invested in socio-economic and enterprise development initiatives.

• Environmental benefits include 147.2 million kilolitres of water saved and 124.5 million tonnes of CO₂ emissions offset.

These figures highlight the dual aim of the programme: delivering clean and sustainable energy while empowering communities and strengthening local economies.

Embracing Accountability and Parliamentary Oversight

The Department acknowledged the concerns raised—particularly by the MK Party in Parliament—and emphasized its openness to public scrutiny and democratic oversight. In line with this, Minister Ramokgopa announced he would write to the Chairperson of the Portfolio Committee on Electricity and Energy to request a formal briefing session.

“We welcome robust democratic scrutiny and regard public accountability as a cornerstone of good governance,” said the Minister. “We look forward to engaging with Parliament and the public to address any questions they may have.”

The Department called on any individual or organization with credible evidence of wrongdoing to submit it through the appropriate legal and institutional channels, reaffirming its zero-tolerance stance on corruption.

Building Trust and Strengthening Partnerships

Minister Ramokgopa reiterated that the Department remains committed to continuous engagement with all stakeholders, including political parties, civil society organizations, and industry partners. This inclusive approach aims to enhance transparency and improve developmental outcomes in South Africa’s energy sector.

“Our energy programmes must not only deliver reliable electricity but must also catalyse economic growth, promote social equity, and secure environmental sustainability,” he said.

The Department’s proactive response to the controversy underlines its broader goal: to ensure that South Africa’s energy transition is rooted in integrity, national interest, and broad-based development.