Renewable Energy Independent Power Producer Procurement: Department of Energy update

PMG 24 April 2012.

Date of Meeting:

24 Apr 2012

Chairperson:

Mr S Njikelana (ANC

Summary:

The Department of Energy presented the programme update on the Renewable Energy Independent Power Producer Procurement, which was a course of action required by the Integrated Resource Plan which called for the Minister, in consultation with the National Energy Regulator of South Africa to determine a New Generation Capacity for the procurement of 3 725 megawatts across different technologies.

This process created, within it, a bidding process that would attract, subject to very strict rules of eligibility to participate in this programme, various bidders to make submissions in the first and second window as to the capacity that they could produce,. The procurement process had three procurement documents: the request for proposals; the Power Purchase Agreement; and the implementation agreement. Failure to comply with the various requirements of the different agreements would render a bidder’s bid unsuccessful. The process also had in it an evaluation component, to determine successful bids, which had its own composition. Successful bids were received for Solar Photovoltaic, Concentrating Solar Power, and Wind, while no successful bids were received for biomass, biogas, landfill gas, and small hydro.

Members then took the opportunity to engage with the presentation and interrogate the facts as they were presented. Questions were raised surrounding the transparency and the fairness of the procurement process, as well as concerns around the areas in which no bids were received as these were seen to be important areas to explore for the purposes of renewable energy…

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