http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.65Change: -0.15
R/$ = 10.59Change: -0.09
Au 1284.10 $/ozChange: 2.48
Pt 1404.50 $/ozChange: 4.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Nelson Mandela 1918 - 2013   Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science & Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 31, 2011

SA finally sets renewables bidding process in motion

Back
Upington|Central Energy Fund|Eskom|Renewable Energy|South Africa|Hydro Technologies|Landfill Gas|Local Economic And Manufacturing Propositions|Renewable Energy Feed-in Tariffs|Renewable Energy Generation Capacity
upington|central-energy-fund|eskom|renewable-energy|south-africa|hydro-technologies|landfill-gas|local-economic-and-manufacturing-propositions|renewable-energy-feed-in-tariffs|renewable-energy-generation-capacity
© Reuse this



The South African government has finally formally launched the long-delayed process to procure new renewable energy generation capacity, having published an advertisement for a request for qualifications and proposals over the weekend.

The Department of Energy (DoE) has invited potential developers to submit proposals for the financing, construction, operation and maintenance of any onshore wind, solar thermal, solar photovoltaic, biomass, biogas, landfill gas, or small hydro technologies.

The request for proposals (RFP) documentation would be available for download from midday August 3, 2011, and a mandatory bidders briefing session had been scheduled for September 14, at 10:00.

Successful bidders would enter into an implementation agreement with the DoE and a power purchase agreement with a “buyer”, most probably the single buyers office within State-owned utility Eskom.

No details were provided about the nature of the RFP, but Engineering News Online understands that the DoE would pursue a two-stage selection process, with price competition featuring as part of the second phase.

Other selection criteria could include technical feasibility and grid connectivity, as well as environmental acceptability, black economic empowerment, community development and local economic and manufacturing propositions.

Projects clearing these selection hurdles would then be assessed on the proposed sale price of the power produced. In other words, the renewable energy feed-in tariffs (Refit) promulgated by the National Energy Regulator of South Africa (Nersa) in 2009 would not be deployed, but would be used as a “ceiling” price for any bid.

The abandonment of the Refit has raised anxiety levels among potential developers, which warned that the absence of a predetermined tariff would raise the risks associated with the roll-out of renewables projects in South Africa.

But the DoE and the National Treasury had raised their own concerns that the Refit might not be legally compliant with government procurement rules. They had also indicated that they did not want to repeat some of the financial errors associated with Refit programmes in other countries.

Government had, thus, opted to include an element of price competition. Nevertheless, the programme would still require special dispensation to depart from government’s preferential procurement rules, which currently included a 90% weighting towards price and only a 10% weighting for other selection criteria.

The DoE indicated that all bids should be accompanied by a “bid guarantee” equal to R100 000 for every megawatt of installed capacity proposed. Further, prior to accessing the RF, prospective bidders would be required to make a nonrefundable payment of R15 000 and to complete a registration form, which was available for download at www.ipp-renewables.co.za.

SOLAR PARK PROGRESS

Meanwhile, three RFPs were also advertised over the weekend, relating to the feasibility study for a 5-GW solar park corridor, in the Northern Cape.

The tender advert was published by the State-owned Central Energy Fund (CEF), which had been given a Cabinet-backed mandate to manage the early stages of the proposed project and its first 1 GW phase, to be located near the sun-drenched town of Upington.

The RFPs advertised were for a feasibility study consultant, an environmental assessment practitioner, and for a geotechnical engineering consultant.

The documents would be released electronically on receipt by the CEF of a R3 000 nonrefundable payment.

The deadline for the submissions of bid for the environmental and geotechnical elements is August 11, 2011, while the potential feasibility consultants have until August 16, 2011, to submit their tender documentation.
 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
Other Macro and Micro News
Collusion and fraud are often difficult to detect, owing to data potentially being manipulated to hide such activities in a company. However, by using established international auditing best practices and software tools, as well as by playing an active role in risk...
Renewable-energy projects, such as this Northern Cape solar farm, seen as key to low‐carbon energy supply.
Upfront investment costs will and should remain a critical consideration as South Africa moves to upscale and accelerate its infrastructure programmes. But one of the lead authors of the latest Intergovernmental Panel on Climate Change (IPCC) argues that the...
South African stocks were led lower by top tier mining stocks on Tuesday as global gold prices slumped by more than two percent on US dollar strength. AngloGold Ashanti was the biggest loser in the blue chips index, tumbling 3.78% at R184.25, its biggest percentage...
More
 
 
Latest News
Updated 6 hours ago As industry prepares for the launch of South Africa’s digital terrestrial migration, the South African Communications Forum (SACF) hosted a workshop to determine the country’s readiness in terms of compliance of set-top boxes [STBs] and access to funding. The...
Higher Education and Training Minister Blade Nzimande
Updated 6 hours ago Higher Education and Training Minister Blade Nzimande has outlined plans for the development of a new health and allied sciences university into which the Medical University of Southern Africa (Medunsa) campus of the University of Limpopo, located in Ga-Rankuwa, will...
Communications Minister Yunus Carrim
Updated 6 hours ago The costs of communicating have to drop, Communications Minister Yunus Carrim said on Wednesday. "Clearly, the costs have to come down. It's not just in the interests of the poor and disadvantaged but the economy as a whole," Carrim said in a statement following a...
More
 
 
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
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...
 
 
 
 
 
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
MORE IN SA Phase 2 should see local content on the mainline locomotive increase from 65% to 80% by the end of 2014
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks