Tag archives: Renewable energy

Energy update from the Minister of Energy

The Minister today committed government to a collaborative approach with the private sector in dealing with the current energy crisis in South Africa. At the DLO Africa Power Roundtable Conference today (26 March 2019), the Minister spoke positively about the imminent release of the final Integrated Resource Plan (IRP), the unbundling of Eskom and long-term … Continue reading

Nuclear New Build Programme announced

On 14 December 2016, the Minister of Energy, in consultation with the National Energy Regulator of South Africa (NERSA), published the Department of Energy’s determination notice for the Nuclear New Build Programme (Nuclear Programme). The Minister announced that 9 600MW of energy capacity should be procured and generated from nuclear energy under the Nuclear Programme. … Continue reading

South African renewable energy programme: benefits of local community investments

In order to ensure that the construction and operation of renewable energy projects in South Africa is not hampered by unsatisfied local communities it is important that borrowers’ and sponsors’ alike invest in educating local communities on how they derive benefit from the projects. Since our article of September 2014 (Renewable energy projects: community related … Continue reading

Refinancing under the Coal Baseload RFP- DoE to share in the gains

The Coal Baseload Independent Power Procurement Programme Request for Qualification and Proposals (RFP) was released by the Department of Energy (DoE) in December 2014. The RFP allows preferred bidders, with the approval of the DoE, to undertake any refinancing or re-arrangement of the debt or equity at any time during the term of the Implementation … Continue reading

Understanding the Coal Baseload IPP Procurement Programme – PB PD Undertaking

In the Request for Qualifications and Proposals (RFP) issued in relation to the Coal Baseload IPP Procurement Programme, the Department of Energy (DoE) recognises that, at any bid submission date, bidders may not have all of the necessary appointments, consents or documents required to undertake their projects immediately upon being appointed as preferred bidders. To … Continue reading

Cross Border Projects under Coal Baseload Independent Power Producer Procurement Programme Request for Qualification and Proposal

The Coal Baseload Independent Power Procurement Programme Request for Qualification and Proposals (RFP) released by the Department of Energy (DoE) allows bidders to bid cross border projects. We highlight some of the key features relating to cross border projects under the RFP. Cross border facility and cross border project A cross border facility is a … Continue reading

Understanding the Coal Baseload IPP Procurement Programme – Affected Projects

The Request for Qualifications and Proposals (RFP) released by the Department of Energy (DoE) in respect of the Coal Independent Power Producer Procurement Programme (CIPPPP) introduces a new Part D which relates to affected projects. The RFP allows a bidder to inform the DoE of any project in which it is involved which is experiencing … Continue reading

Projects to perform ancillary services under the new Coal Baseload IPP Procurement Programme

Under the Coal Baseload IPP Procurement Programme projects may be required to provide ancillary services to Eskom as grid provider to support the reliable and secure operation of the transmission system by Eskom. The ancillary services will be procured under a separate agreement to the power purchase agreement (PPA), namely the Ancillary Services Agreement (ASA). … Continue reading

Construction contract requirements under Coal Baseload IPP Procurement Programme

The Request for Qualification and Proposals for New Generation Capacity under the Coal Baseload IPP Procurement Programme (RFP) requires bidders to provide a detailed and comprehensive term sheet or a substantially developed agreement with each of the proposed EPC and O&M contractors for the construction and operation of the facility. This is a significantly different … Continue reading

Coal Baseload Independent Power Producer Procurement Programme – Concepts in the Request

The Department of Energy’s (DoE) highly anticipated Coal Baseload Independent Power Producer Procurement Programme Request for Qualifications and Proposals (RFP) has introduced concepts that we did not see in the Renewable Energy Independent Power Producer Procurement Programme. We highlight a few of these concepts: Affected Projects The RFP provides for an Affected Project – these … Continue reading

Key features of the Coal Baseload Independent Power Producer Procurement Programme Request for Qualification and Proposal

In December 2014, the Department of Energy (DoE) released the Coal Baseload Independent Power Procurement Programme Request for Qualification and Proposals (RFP). We highlight some of the key features of the RFP. Bid phases The RFP provides for more than one bid submission phase. The first bid submission date is 8 June 2015. The DoE anticipates … Continue reading

Biogas Plants blaze a trail in the SA electricity market

Given the current initiatives to promote private investment in the South African electricity market, the execution of the power purchase agreement between BMW South Africa and Bio2Watt’s biogas plants that will bring “renewable energy” to BMW’s manufacturing plant in Rosslyn, Pretoria is sure to blaze the trail for new private power generation and offtake markets … Continue reading

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 … Continue reading

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 … Continue reading

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 … Continue reading

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 … Continue reading

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 … Continue reading

Coal Baseload Independent Power Producer Programme – factors contributing to success

The essential requirements of the Coal Baseload Independent Power Producer Procurement Programme (CBIPPPP) were set out in the Department of Energy’s (DoE) Request for Registration (RFR) of 26 June 2014. The RFR also gives a flavour of the key factors the DoE will consider in the evaluation of bid responses submitted, some of which are tariff, … Continue reading

Coal Baseload Independent Power Producer Programme – a snapshot

On 26 June 2014, the Department of Energy (DoE) released the Request for Registration (RFR) in respect of the Coal Baseload Independent Power Producer Procurement Programme (CBIPPPP). Although the RFR is intended to invite prospective bidders to submit information to the DoE to assist in the planning of the programme, it also gives an insight … Continue reading

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 … Continue reading

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 … Continue reading

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 … Continue reading
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