South Africa: RFP for New Power Generation Capacity

Background:

The South African Department of Mineral Resources and Energy seeks to procure 2,000 MW of new generation and supply capacity from a range of energy technologies. This Request for Proposals for new generation capacity falls under the “Risk Mitigation Independent Power Producer Procurement Programme” (RMIPPPP).

The RFP is based on the following criteria:

  • It will be technology agnostic
  • It will be based on the plant-performance needs of the electricity system operator
  • It will procure dispatchable flexible generation that should be able to provide energy, capacity and ancillary services
  • It should be able to operate between 5:00 am to 9:30 pm SAST
  • It must have an automatic generation control load following ability and flexible capacity factor; it must also be “scalable” with changing capacity requirements
  • Must be able to connect power to the grid by June 2022

The contracted capacity of an awarded project shall be between 50 and 450 MW, subject to availability and transmission evacuation capacity at the connection point. The project can comprise of a single facility using a single technology solution on a single project site, as well as more than one facility using different technology solutions on single or multiple project sites. The RMIPPPP will provide for long-term power purchase agreements up to 20 years, and bidders are expected to commit to job creation, socio-economic development, supplier and enterprise development, and skills development. Stringent local content thresholds and targets are included to provide impetus to the local construction and manufacturing sectors.

Note that the RFP will be released to prospective bidders that completed an electronic registration form and paid a nonrefundable fee of ZAR 25,000 for each prospective project. Additionally, there will be a virtual bidders conference at a date TBA before the bid submission deadline.

Link for more information:

Information on the RMIPPPP RFP and associated processes can be accessed online at www.ipp-rm.co.za.

Proposal Deadline:

Due to the emergency nature of the RMIPPPP, the objective is to procure energy from projects that are near ready. The timelines are short to ensure that electricity can be connected to the grid as soon as possible.

  • RFP release in the market: August 23, 2020
  • Bid Registration and Notification Open: August 24, 2020
  • Bid Registration & Notifications Close: October 30, 2020
  • Bid Submission: November 24, 2020
  • Preferred Bidder announcement (Estimated): December 15, 2020
  • Anticipated Financial Close: April 30, 2021

Point of Contact:

Enquiries should be directed to the Project Officer by way of email addressed to: query@ipp-rm.co.za