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'Huge response' to renewables tender

20 September 2011

The preferred bidders to supply South Africa with renewable energy, as called for in the country's Integrated Resource Plan for 2010 to 2030, will be announced at the UN climate summit starting in Durban on 28 November.

South Africa's Integrated Resource Plan envisages renewables contributing 42%, or 17 800 MW, of the country's new generation capacity by 2030.

The Department of Energy has put out a tender for the procurement of the first 3 725 MW of renewables capacity by 2016, which is likely to attract local and international investment of between US$10-billion and $12-billion.

'Overwhelming response'

Speaking at a bidders' conference for independent power producers in Midrand last week, department Director-General Nelisiwe Magubane said the level of interest shown by potential bidders was astonishing.

Over 270 potential bidders had paid the R15 000 fee necessary to receive bid documentation. Magubane added that there was interest in the programme from companies from Spain, among other countries.

"We are overwhelmed by the response from the market," Magubane said, adding that the department believed the programme was bankable, judging by the response received.

Potential bidders for the supply of the first 3 725 MW of renewable powere, including onshore, concentrated solar, biomass and small hydro, have until 4 November to submit their bids for consideration.

Environmental authorisation, economic development

Among the requirements expected of bidders is that they submit environmental authorisation as well as shareholder agreements. Potential bidders are also expected to show achievement of economic development threshold.

State electricity company Eskom will be the designated buyer and will provide connection to the power grid, excluding municipal connections.

"We have received 321 applications for grid connection mainly for wind and PV (photo-voltaic)," said Eskom head of delivery Kannan Lakmeeharam.

Source: BuaNews