IPP Procurement Programme for South Africa

Invitation to submit a proposal for the finance, construction, operation, and maintenance of renewable energy generation facilities

South Africa has a high level of Renewable Energy potential and presently has in place a target of 10 000 GWh of Renewable Energy. The Minister has determined that 3 725 megawatts (MW) to be generated from Renewable Energy sources is required to ensure the continued uninterrupted supply of electricity. This 3 725 MW is broadly in accordance with the capacity allocated to Renewable Energy generation in IRP 2010-2030.

This IPP Procurement Programme has been designed so as to contribute towards the target of 3 725 megawatts and towards socio-economic and environmentally sustainable growth, and to start and stimulate the renewable industry in South Africa.

The following technologies shall be considered as qualifying technologies for selection under this IPP Procurement Programme:

Onshore wind 1 850 MW
Concentrated solar thermal 200 MW
Solar photovoltaic1 450 MW
Biomass 12,5 MW
Biogas 12,5 MW
Landfill Gas 25 MW
Small hydro 75 MW
Small Projects 100 MW

In terms of this IPP Procurement Programme, the Bidders will be required to bid on tariff and the identified socio-economic development objectives of the Department. The tariff will be payable by the Buyer pursuant to the PPA to be entered into between the Buyer and the Project Company of a Preferred Bidder.
The generation capacity allocated to each Technology is in accordance with the adjacent table and the maximum tariff that a Bidder may bid for purposes of the IPP Procurement Programme is as set out in the RFP.

Each Facility procured in terms of this IPP Procurement Programme will be required to achieve commercial operation by not later than the dates set out in the RFP.

Based upon the principles of this IPP Procurement Programme, the Department intends to introduce a separate ‘Small Projects IPP Procurement Programme’ for electricity generation projects of less than 5MW.

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This DOE document seems to be incomplete…we will publish further developments as they become available.

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Source…Department of Energy (South Africa)

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