IPP Procurement Programme – Preferred renewables bidders

The results of the first phase (or window) of the Department of Energy’s (DoE) call for qualification and proposals for `new generation capacity under the IPP Procurement Programme (“The Project”)’ has been announced.

An Engineering News Online article published on 1 December 2011 revealed that `The 53 renewable energy independent power producer (IPP) project bids received by South Africa's Department of Energy (DoE) on November 4 – representing potential capacity of 2 127 MW and potential investment of R64-billion – have been evaluated by the transaction advisers appointed to the programme and the results have been passed on to the DoE for adjudication’. It also reported that `DoE deputy director-general Ompi Aphane indicated separately to Engineering News Online that the process was on track and that government was still keen to announce the qualifying bidders during the course of next week {while COP17 was still in session}.’

A second Engineering News Online article published on 8 December 2011 reported that `South Africa’s Energy Minister Dipuo Peters has officially disclosed the names of the first 28 renewable energy independent power producer (IPP) preferred bidders, which now have until June 2012 to take their projects to financial closure.’ The preferred bidders named included 18 solar photovoltaic (PV) projects, eight onshore wind projects and two concentrated solar power (CSP) projects.

The PV projects named range in size from 5 MW to 75 MW with a combined capacity of 631.53 MW while the two CSP projects will have a capacity of 150 MW. The wind projects listed represent 633.99 MW of capacity.

A further two windows were planned for 2012, and two more for 2013, as part of a programme to procure 3 725 MW of renewables capacity from IPPs before 2016. The next bid window would close in the first quarter of 2012, with more than 2 309 MW, or more than 60% of the capacity, yet to be allocated. A simplified bid document, together with a term sheet, for small-scale renewable projects of between 1 MW and 5 MW would be released during the first quarter of 2012.

Copies of the Engineering News Online articles dated 1 and 8 December 2011 are available here.