Preferred bidders for renewable energy announced

Thursday, December 8, 2011

Pretoria - The Energy Department has released its first list of preferred Independent Power Producers (IPPs) which will contribute to the country's energy mix.

This after the department put out a request for proposals on new generation in August, asking IPPs to submit their proposals for the first window, which closed on 4 November.

South Africa wants to procure 3 725 MW of renewable energy through this process. According to the Integrated Resource Plan (IRP2010) - which is a 20-year projection on electricity supply and demand - about 42% of electricity generated in South Africa is required to come from renewable resources.

Initially, the department had received 53 bids from IPPS.

"From phase 1 of the large scale renewable project, 53 bids amounting to 2 128 MW were received across Wind, Solar PV, Solar CSP and Small hydro. The evaluation resulted in 28 bids with a total MW of 1 416 being selected as preferred bidders," said the department on Wednesday.

Among the preferred bidders for Solar PV provision is SlimSun Swartland Solar Park, with 5MW capacity and De Aar Solar PV with 48.25 MW. A total of 18 preferred bidders for Solar PV were selected. All 18 represent 631.53 MW of capacity.

There were eight preferred bidders for wind energy, which collectively represent 633.99 MW of capacity, that were selected as well as two Solar CSP (concentrated solar power) bidders selected. They represent 150 MW of capacity.

Potential bidders for the supply of renewable power, such as onshore, concentrated solar power, biomass and small hydro have until 4 November to submit their bids for consideration.

There are five window phases in which potential bidders can submit their bids to provide power, with the second deadline in 2012.

In September, the department said it would announce the preferred bidders in renewable technology forms during COP17 currently underway in Durban.

"The department is confident that the preferred bidders will successfully conclude their project arrangements in order to meet the financial close deadline of 30 June 2012 and construction to commence shortly thereafter," it said.

The evaluation of the bids was done by international reviewers, legal reviewers, technical as well as financial evaluators, while the venue where evaluation took place was under 24-hour voice and visual CCTV monitoring.