US concerned by localisation stipulations in SA’s renewables tender


US Assistant Secretary of Commerce Michael Camuñez, who is leading a trade delegation to South Africa that includes 14 American renewable energy firms, voiced some concern on Monday about the local content stipulations contained with the country’s recently released bidding documentation.

The mission follows hot on the heels of the September 14 bidders conference convened to offer potential independent power producers deeper insight into the Department of Energy’s (DoE’s) tender for the procurement of the first 3 725 MW of renewables capacity by 2016.

The first bid window would close on November 4 and the commercial processes should be completed by mid-2012. This could trigger a project development phase that was likely to involve foreign and domestic investment of between $10-billion and $12-billion.

The current version of South Africa’s Integrated Resource Plan for 2010 to 2030, which would be changed periodically, envisaged renewables contributing 42%, or 17 800 MW, of South Africa’s new generation capacity by 2030.