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Progress on the Renewable Energy IPP Procurement Programme November 2013

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

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  1. Progress on the Renewable Energy IPP Procurement Programme November 2013

  2. 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

  3. 1st Determination

  4. Second Determination

  5. 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

  6. Procurement Process Background Procurement documents To be concluded in respect of all Bid Window 3 projects

  7. Contractual Arrangement Implementation Agreement Power Purchase Agreement Government Framework Support Agreement

  8. Procurement Process Background Request for Proposal (RFP)

  9. Overview of evaluation process

  10. 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

  11. PREFERRED BIDDERS

  12. Preferred BiddersSummary

  13. Preferred Bidders Salient TermsSolar Photovoltaic

  14. Preferred Bidders Salient TermsWind

  15. 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.

  16. Preferred Bidders Salient TermsLandfill Gas

  17. Preferred Bidders Salient TermsBiomass

  18. Preferred BiddersJob creation per Province * One job = 12 person-months

  19. 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

  20. Preferred BiddersForeign Investment

  21. Preferred Bidders Economic DevelopmentSolar Photovoltaic

  22. Preferred Bidders Economic DevelopmentWind

  23. Preferred Bidder Economic DevelopmentConcentrated Solar Power

  24. Preferred Bidders Economic DevelopmentLandfill Gas

  25. Preferred Bidders Economic DevelopmentBiomass

  26. Analysis of MW allocation and remaining

  27. Preferred BiddersGeographic Distribution

  28. Recommended Preferred Bidders – CSP Location for window one projects

  29. Thank you • For more information visit: • www.energy.gov.za and • www.ipp-renewbles.co.za

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