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Progress on the Renewable Energy IPP Procurement Programme November 2013. Integrated Resource Plan. First Determination. Second Determination.
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Progress on the Renewable Energy IPP Procurement Programme November 2013
Integrated Resource Plan First Determination Second Determination 1. Built, owned & operated by IPPs 2. Commitment necessary due to required high-voltage infrastructure, which has long lead time 3. Commitment necessary due to required gas infrastructure, which has long lead time 4. Possibly required grid upgrade has long lead time and thus makes commitment to power capacity necessary
Background • To-date, the Department has: • Under Bid Window 1, entered into 28 agreements on 5 November 2012; • Under Bid Window 2, entered into 19 agreements on 9 May 2013. • With regards to Bid Window 3: • Received 93 bids on the 19 August 2013 • These bids amount to 6023MW whilst the available MW for allocation was 1473MW • The Department was pleased to note the competitive pricing offered in the bids received
Procurement Process Background Procurement documents To be concluded in respect of all Bid Window 3 projects
Contractual Arrangement Implementation Agreement Power Purchase Agreement Government Framework Support Agreement
Procurement Process Background Request for Proposal (RFP)
Evaluation Protocols • Evaluation conducted in a ‘closed’ evaluation environment, under strict security conditions • Members of the evaluation team are ‘ring-fenced’ within each of their firms • Declaration of interest by all firms and individuals involved in the evaluation process • Reports prepared by each discipline reviewed by independent review teams • Overall process reviewed by independent governance review teams
Preferred Bidders Salient TermsConcentrated Solar Power * Bid Window 3 base price payable for 12 hours every day and 270% of base price payable for 5 “peak” hours every day. This pricing basis is not comparable with Bid Windows 1 and 2.
Preferred BiddersJob creation per Province * One job = 12 person-months
Preferred BiddersInvestment per Province * Total Project Cost - aggregate Debt and Equity required to fund the Project ** Total Project Value - defined in the IA, used to calculate the Bidder’s local content commitment
Preferred Bidder Economic DevelopmentConcentrated Solar Power
Recommended Preferred Bidders – CSP Location for window one projects
Thank you • For more information visit: • www.energy.gov.za and • www.ipp-renewbles.co.za