Jul 19, 2012
Deadline for closure of first 28 renewables bids extended to meet developers 'halfway'Back
Renewable Energy|South Africa|Renewable Energy Projects|Dipuo Peters|Jacob Zuma
© Reuse this
The deadline had originally been set for June 19, but the Department of Energy (DoE) decided to extend the deadline for the signing of the implementation, connection and power purchase agreements in an effort to assist bidders struggling to finalise outstanding bid commitments.
Peters described the Renewable Energy Independent Power Producer Programme (REIPPP) as a “pioneer” process globally and indicated that the decision to extend the timeframe had been informed by President Jacob Zuma’s appeal to government departments to alleviate constraints on businesses seeking to invest.
The process had involved a “learning curve for all of us” and the DoE was prepared to “meet developers halfway to ensure that the investments take place”.
She indicated that some bidders were battling to meet the “stringent” requirements of financial institutions, while others were dealing with environmental appeals processes, or working on ways to meet the jobs, local content and community development commitments outlined in their bids.
It was important to ensure that as many of the 28 projects licenced by the National Energy Regulator of South Africa (Nersa) as possible moved towards implementation to bolster confidence in the REIPPP process.
“This window must give us the requisite result to convince ourselves, to convince industry and to convince South Africans that this is the route to go,” Peters said.
Through the REIPPP, government was seeking to procure 3 725 MW of capacity, to be introduced into South Africa’s power generation mix between 2014 and 2016.
On December 7, Peters named 18 solar photovoltaic projects, representing 631.53 MW of capacity, two concentrated solar power projects, with a combined capacity of 150 MW, and eight onshore wind developments, representing 633.9 MW, as the first preferred bidders.
Subsequently, 19 additional projects, collectively representing 1 043.9 MW, were named in May, following the second-bid-window evaluation, which took place between March 5 and May 21.
The 47 preferred bids, which represented some 2 459.4 MW of renewables capacity, were expected to collectively invest some R70-billion to develop their projects.
However, Peters said that any capacity not taken up by the first 28 bidders would have to be included during window three, which was initially scheduled for August, but which was likely to be delayed as a result of the first-window schedule change.
She also indicated that the financial close deadline for the 19 second-window projects, which was initially set down for December 13, would probably be moved into the new year.
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines
Other Construction News
Recent Research Reports
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 Report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
This Week's Magazine
A structured approach, wherein managers personally engage at each level of the project, is necessary to mitigate delays to the workflow on mega construction projects, says State-owned Eskom Kusile power station projects GM Abram Masango. The 4 800 MW Kusile power...
Construction of transmission lines to evacuate power from a regional hydroelectric project in East Africa, which was hanging on the balance following the withdrawal of financing by key partners, is now back on track. After six months of uncertainty, the African...
Three Memorandums of Understanding (MoUs) were signed between South African and Malaysian companies at the Malaysian High Commission in Pretoria on Friday. These MoUs are part of the indirect offsets programme South Africa is providing in return for Malaysia’s...
The South African new vehicle market may well dip to 640 000 units in 2014, says Toyota South Africa Motors (TSAM) sales and marketing senior VP Calvyn Hamman. This is the first prediction that anticipates a drop in the market. To date economists and industry bodies...
Nissan will re-enter the South African minibus taxi industry in March, when the new NV350 Impendulo goes on sale. The 16-seater has been specifically tailored to meet the terms of government’s Taxi Recapitalisation Programme, which aims to replace South Africa’s...