DBSA Seeks Advisers for South Africa’s Energy Programme


THE Development Bank of Southern Africa (DBSA) invited advisers at the weekend to bid for the provision of transaction advisory services for the government’s renewable energy feed-in tariff programme.

The invitation for bids is the start of the procurement process under the renewable energy feed-in tariff programme. A renewable energy feed-in tariff is a policy mechanism designed to encourage the adoption of renewable energy sources. The feed-in tariff mechanism ensures guaranteed tariffs at which power producers can sell renewable power to the national electricity grid.
Production and use of electricity from renewable energy sources are key steps towards mitigating climate change, ensuring a diverse mix of energy sources and developing the renewable energy technology industry. In terms of its 2003 white paper on renewable energy, the government wants to produce 10 000GWh of renewable energy by 2013.
Acting on behalf of the Department of Energy, the DBSA has invited bids from local and international advisers to draft the procurement documentation for renewable energy projects in SA.

The Department of Energy is also expected to publish a request soon for information aimed at potential private developers of renewable energy projects. The request will be directed to renewable energy developers with energy projects already under way.
These were the projects for which comprehensive feasibility studies had been completed, the DBSA said.

It said the request for information would help in the development of a comprehensive request for proposals for renewable energy projects. It would also indicate the state of readiness of potential projects under the renewable energy feed-in-tariff programme and gauge market interest. “The (request for information) is intended to generate information necessary to assess the progress developers have made since the announcement of the (renewable energy feed-in tariff) programme as well as the readiness of the market to enter into accelerated procurement and negotiation processes.”
“The results of the (request for information), therefore, will inform the design of the procurement process and documentation, the criteria to be developed for selection of the preferred candidates, as well as the capacity and resources required by the government for the successful implementation of this initiative.”
The National Energy Regulator of SA (Nersa) last year published renewable energy feed-in tariff for wind (R1,25/kWh), small hydro (94c/kWh), landfill gas (90c/kWh) and concentrated solar (R2,10/kWh). These tariffs were acclaimed as attractive enough to stimulate investment in the renewable energy sector.
Advert by DBSA


Under the Memorandum of Understanding between the Department of Energy (DOE), National Treasury and the DBSA
on Independent Power Producers (IPPs), the DBSA, on behalf of the DOE, hereby invites suitably qualified advisors to bid
for the provision of Transaction Advisory services related to the Renewable Energy Feed-In Tariff (REFIT) programme.
The required skills and experience of the Transaction Advisors, both international and local, are as follows:
• Financial analysis, with relevant IPP experience
• Legal analysis, with relevant experience in regulatory matters, drafting and negotiating of power purchase and
related agreements
• Knowledge of international renewable energy markets
• Technical knowledge in technologies indicated in REFIT onshore wind, solar (CSP and PV), biomass, small hydro, biogas
and landfill gas
• Contract and project management skills
• Environmental and social (including local economic development)
• Black Economic Empowerment (BEE)
Firms may choose to bid for all the above components or for selected components.
A Terms of Reference detailing the bid requirements will be made available on the DBSA, Department of
Energy and National Treasury (PPP Unit) websites www.dbsa.org, www.energy.gov.za, www.ppp.gov.za by
Monday, 27 September 2010 at 11h00.
Hard copies may be obtained from the DBSA at 1258 Lever Road, Headway Hill, Midrand, Gauteng, South Africa.
Bid enquiries: Email: IPPEnquiries@dbsa.org

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