http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.67Change: -0.02
R/$ = 12.36Change: -0.05
Au 1167.92 $/ozChange: -0.88
Pt 1069.00 $/ozChange: -13.00
 
 
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
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 31, 2011

SA finally sets renewables bidding process in motion

Back
Construction|Engineering|Africa|Eskom|Gas|PROJECT|Projects|Renewable Energy|Renewable-Energy|Africa|Energy|Maintenance|Manufacturing|Environmental|Power
Construction|Engineering|Africa|Eskom|Gas|PROJECT|Projects|Renewable Energy|Renewable-Energy|Africa|Energy|Maintenance|Manufacturing|Environmental|Power
construction|engineering|africa-company|eskom|gas|project|projects|renewable-energy|renewable-energy-company|africa|energy|maintenance|manufacturing|environmental|power
© 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 (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Updated 21 minutes ago This six-page brief is a synopsis of key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, revisions and expansion to sector support, competitiveness, and prospects for the sector.
Updated 40 minutes ago The DA and the EFF had caustic reactions to reports that the Passenger Rail Agency of South Africa (PRASA) imported brand new locomotives worth R600-million despite explicit warnings that the trains are not suited for local rail lines. Senior railways engineers and...
Former Cosatu general secretary Zwelinzima Vavi
Updated 45 minutes ago The statement issued by the ANC and its alliance partners after a summit last week is silent on several key issues, including the crises in state-owned enterprises, and is in conflict with views Cosatu is supposed to have, former Cosatu general secretary Zwelinzima...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
NHLANHLA NENE The main constraints to economic growth are domestic
Finance Minister Nhlanhla Nene earlier this month stated that, while South Africa’s 2015 economic growth target of 2% was achievable, it was not enough to deliver the tax revenue needed to combat the country’s challenges.
The World Steel Association has published the 2015 edition of the World Steel in Figures report, which shows an increase in steel production as well as provides an overview of steel industry activities from crude steel production to apparent steel use.
The 25-year master plan for Gauteng’s Aerotropolis project will go through a process of approval and adoption during June and July, says Aerotroplis project manager Jack van der Merwe. “We are also in the process of putting together a special purpose vehicle (SPV) to...
SOLAR PANELS The existing buildings in the Coega Industrial Development Zone lent themselves well to rooftop solar panel installations
The Coega Development Corporation (CDC) plans to fit 15 of its buildings, totalling 127 000 m2 of roof space, in the Coega Industrial Development Zone (IDZ), in the Eastern Cape, with solar panels.
The Supreme Court of Appeal’s (SCA’s) November 2014 judgment, ordering steel producer ArcelorMittal South Africa (AMSA) to hand over the 2003 Environmental Master Plan for its Vanderbijlpark steel plant to environmental pressure groups, confirmed the right of civil...
 
 
 
 
 
 
 
 
 
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
Subscribe Now for $96 Close
Subscribe Now for $96