http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.31Change: -0.08
R/$ = 10.69Change: -0.08
Au 1295.31 $/ozChange: 0.11
Pt 1479.00 $/ozChange: 1.50
 
 
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
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jul 31, 2011

SA finally sets renewables bidding process in motion

Back
Construction|Engineering|Upington|Africa|Central Energy Fund|Eskom|Gas|PROJECT|Projects|Renewable Energy|Renewable-Energy|Africa|South Africa|Energy|Hydro Technologies|Landfill Gas|Local Economic And Manufacturing Propositions|Manufacturing|Renewable Energy Feed-in Tariffs|Renewable Energy Generation Capacity|Environmental|Power
Construction|Engineering||Africa|Eskom|Gas|PROJECT|Projects|Renewable Energy|Renewable-Energy|Africa||Energy||Environmental|Power
construction|engineering|upington|africa-company|central-energy-fund|eskom|gas-company|project|projects|renewable-energy|renewable-energy-company|africa|south-africa|energy|hydro-technologies|landfill-gas|local-economic-and-manufacturing-propositions|manufacturing|renewable-energy-feed-in-tariffs|renewable-energy-generation-capacity|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)
 
 
 
 
 
 
 
 
Other Electricity News
An aloe plant in the foreground as construction gets under ways at the Amakhala Emoyeni wind farm project site
Updated 35 minutes ago Work has officially started at Cennergi’s R3.5-billion Amakhala Emoyeni wind farm, located near Bedford, in the Eastern Cape. The 138 MW project was among the 19 renewable-energy and seven wind projects selected following the second bid window under the South...
South African electricity tariffs are likely to increase by more than the 8% already sanctioned for the year starting April 1, 2015, after the energy regulator determined on Wednesday that Eskom had under recovered R7.82-billion in revenue between 2010 and 2013. The...
Article contains comments
Article contains comments
More
 
 
Latest News
An aloe plant in the foreground as construction gets under ways at the Amakhala Emoyeni wind farm project site
Updated 34 minutes ago Work has officially started at Cennergi’s R3.5-billion Amakhala Emoyeni wind farm, located near Bedford, in the Eastern Cape. The 138 MW project was among the 19 renewable-energy and seven wind projects selected following the second bid window under the South...
Denel Dynamics' Seeker 2
Updated 38 minutes ago Denel’s Seeker 400 unmanned aerial vehicle (UAV) system has successfully completed the second round of flight tests as part of its development process. The tests, conducted at the Alkantpan range in the Northern Cape, included an evaluation of the system for range...
Steve Binnie
Updated 1 hour 18 minutes ago Pulp and paper manufacturer Sappi was headed for a year of profitability as the stronger-than-expected third quarter delivered improved performance within all its operations, barring North America. Despite being a traditionally seasonally weaker quarter, the three...
More
 
 
Recent Research Reports
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
 
 
 
 
 
This Week's Magazine
Multinational semiconductor chipmaker corporation Intel announced its national campaign to further acquire partners to drive its She Will Connect programme, an initiative that aims to expand digital literacy skills to young women in developing countries, further into...
South Africa's MeerKAT radio telescope array programme should get back on schedule within a few months. This assurance has been given by SKA South Africa (SKA SA) associate director: science and technology Prof Justin Jonas. Early last month, Science and Technology...
The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
GARYN RAPSON Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will open the door for court battles to determine who will be held liable for the remediation
The uncertainties around the remediation of affected areas as addressed in the Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will possibly spark litigation and disputes between landowners and businesses, contractors...
South Africa is currently the largest component of the African Development Bank’s (AfDB’s) active portfolio in Southern Africa, comprising 62.5% of the bank’s $7.9-billion exposure to the 12-country region – the second largest beneficiary is Mauritius, which...
 
 
 
 
 
 
 
 
 
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