The Ancillary Services Agreement (ASA) was introduced in briefing note 4 of the Coal Baseload IPP Procurement Programme (the Baseload RFP). The ASA will be entered into by Eskom with each seller of power generated from coal IPP power stations being developed under the Baseload RFP, in parallel with a power purchase agreement with Eskom.
REIPPP
Baseload – Coal Independent Power Producer Procurement Programme
After the success of the Renewable Energy Independent Power Producer Procurement Programme (REIPPP Programme) run by the Department of Energy of South Africa (DoE), the release by the DoE of the requests for proposals for gas, coal and hydro under the government’s baseload procurement programme is hotly anticipated. We highlight below some of the differences…
Renewable energy projects: community related protests
The economic development obligations placed on developers in terms of the Renewable Energy Independent Power Producer Procurement Programme are fairly onerous and can have far-reaching implications for renewable energy projects in South Africa if protests by unhappy local communities are events of default.
To comply with the ownership requirement imposed as part of the economic…
What is the DoE doing to reduce costs for developers of small projects?
The DoE recently made sweeping amendments to the RFP under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) to make the bid submission process cheaper and less onerous for developers. Will the DoE make the same changes to the RFP under the Small Project Independent Power Producer Procurement Programme (SPIPPPP)?
The intention is to
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Round 3 projects required to comply with amended B-BBEE Codes
Projects aiming to reach financial close in the third round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) in November 2014 will be affected by the amended Broad-Based Black Economic Empowerment Codes of Good Practice (Amended B-BBEE Codes) following amendments to the Implementation Agreement.
Some of the most significant changes to the Implementation…
Department of Energy amends System Event provisions in the Round 3 and 4 Power Purchase Agreements
A seller will not be entitled to claim relief if a delay in connection of a facility to the grid (defined as a System Event in the power purchase agreement) prevents it from generating energy during the early operating period.
On 14 June 2014, the Department of Energy (DoE) released the revised power purchase agreement…
Coal IPP Procurement Programme about to kick off
After numerous press releases about the impending release of the Coal Independent Power Producer Procurement Programme (CIPPPP), the Department of Energy (DoE) released a formal request for compulsory registration for new generation capacity under the CIPPPP on 25 June 2014.
Developers who wish to take part in this programme must register if they wish to…
Amendments to the REIPP RFP aim to make bidding cheaper, but is it worth it?
The Department of Energy has released the fourth edition request for proposals under the Renewable Energy Independent Power Producer (REIPP) procurement programme. A number of the amendments have been made following much consultation with developers and lenders over the previous three bid submission rounds. The fourth edition of the RFP can make the bidding process…
Alternative procurement methods for renewable energy projects in South Africa
The price of electricity that private producers have tendered in the third round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPP) has fallen due to increased competition and experience, and the entry of developers who can finance projects off balance sheet rather than through a debt-equity mix. This has led to developers searching…