Renewable Energy IPP Procurement
Programme
Window two Preferred Bidders’ announcement
21 May 2012
Slide 1

Introduction
• The procurement documents were released on the 03 of August
2011 and compulsory bidders conference for the first and second window on the 14 of September 2011.
• The document provides for procurement of 3725MW in five different rounds subject to the availability of the MW
• The Department. Under round one:
– Received 53 Bids on the 4 th of November
– Announced 28 preferred bidders in December 2011
• With regards to round two:
– Received 79 bids on the 5 th of March 2012
– These bids amount to 3255MW whilst the cap was 1275MW

Procurement Process
Background
Procurement documents
Request for
Proposals
• Part A: General Requirements and Rules
• Part B: Qualification Criteria
• Part C: Economic Development
Power Purchase
Agreement
• Wind PPA
• Solar PPA
• Small hydro
• CSP PPA
To be concluded in Phase 2
Implementation
Agreement
• Contract between the IPP and the Department
• Obligation for IPP to deliver on economic development
• In buyer default – Department to pay the IPP

Contractual Arrangement
IPP
Eskom
Government Framework
Support Agreement
Government

Procurement Process
Background
Request for Proposal (RFP)
• Requirements
• Rules
RFP Part A
RFP Part B
Qualification
• Environment
• Land
• Economic Develop
• Finance
• Technical
• Price
• Capacity
• Price
• Job creation
• Local content
• Preferential
Procurement
• Enterprise
Development
• Socio-economic development
RFP Part C
Comparative
Evaluation

PART C EVALUATION
Price
70 %
Project cost
Rand/MW
30 %
ED
Job creation
Socio Economic
Local content
6

OVERVIEW OF EVALUATION
PROCESS
7

Evaluation Composition
Evaluation team:
• International reviewers
• Legal review – Linklaters (UK)
• Technical review – Blueprint consult
•
Financial review
– cross-moderation between the two Financial Advisory firms
• Governance review – Ernst & Young
• Legal evaluation team
• Bowman Gilfillan
• Edward Nathan Sonneberg
• Ledwaba Mazwai
• Webber Wentzel
•
BKS
• Technical evaluation team
• Matt Macdonald
• Financial evaluation team
• Ernst & Young
• PWC
Evaluation Streams:
• Legal Environment
• Environmental Authorization
• Legal Land
• Land right
• Notarial lease registration
• Proof of land use application
• Legal Commercial
•
Acceptance of the PPA
•
Project structure
• Economic Development
• Contributor status level 5
• Compliance with threshold
• Financial
• Full and partial price indexation
• Technical
• Eligibility
• Energy resource

9

Solar photovoltaic
Wind
Small Hydro
CSP
No of Bids
9
7
2
1
TOTAL
MW taken by
Preferred
Bidders
Maximum
MW allocated for round 2
417.1
450
562.5
14.3
50.00
1 043.9
650
75
50
10

IPPID
168
207
373
375
523
527
562
750
764
Preferred Bidders
Solar Photovoltaic
Project Name
Solar Capital De Aar 3
Sishen Solar Facility
Aurora
Vredendal
Linde
Dreunberg
Jasper Power Company
Boshoff Solar Park
Upington Solar PV
TOTAL
MW
75.0
74.0
9.0
8.8
36.8
69.6
75.0
60.0
8.9
417.1
11

Preferred Bidders Salient Terms
Solar Photovoltaic
Price: Fully Indexed (Ave Rand per
MWh)
MW allocation
Total Project Cost ( R’million)
Local Content Value ( R’million)
Local Content %
Job Creation : Construction (People)
Job Creation : Operations (People)
Bid Window 2 Bid Window 1
R 1 645
417 MW
R12 048
R5 727
47.5%
4 557
194
R 2 758
632 MW
R21 937
R6 261
28.5%
10 386
221
12

Preferred Bidders
Wind
IPPID
014
240
303
309
362
364
372
Project Name
Gouda Wind Facility
Amakhala Emoyeni (Phase 1)
Eastern Cape
Tsitsikamma Community Wind
Farm
West Coast 1
Waainek
Grassridge
Chaba
TOTAL
MW
135.2
137.9
94.8
90.8
23.4
59.8
20.6
562.5
13

Preferred Bidders Salient Terms
Wind
Price: Fully Indexed (Ave Rand per
MWh)
MW allocation
Total Project Cost ( R’million)
Local Content Value ( R’million)
Local Content %
Job Creation : Construction (People)
Job Creation : Operations (People)
Bid Window 2 Bid Window 1
R 897
563 MW
R 10 897
R 4 001
36.7%
1 579
65
R 1 143
634 MW
R 12 724
R 2 766
21.7%
1 869
128
14

IPPID
490
815
Project Name
Stortemelk Hydro (Pty) Ltd
Neusberg Hydro Electric Project A
TOTAL
MW
4.3
10.0
14.3
15

Preferred Bidders Salient Terms
Small Hydro
Price: Fully Indexed (Ave Rand per
MWh)
MW allocation
Total Project Cost ( R’million)
Local Content Value ( R’million)
Local Content %
Job Creation : Construction (People)
Job Creation : Operations (People)
Bid Window 2 Bid Window 1
R 1 030
14 MW
R 631
R 421
66.7%
261
7
N/A
N/A
N/A
N/A
N/A
N/A
N/A
16

Preferred Bidder
Concentrated Solar Power
IPPID
002
Project Name
Bokpoort CSP Project
TOTAL
MW
50.0
50.0
17

Preferred Bidder Salient Terms
Concentrated Solar Power
Price: Fully Indexed (Ave Rand per
MWh)
MW allocation
Total Project Cost ( R’million)
Local Content Value ( R’million)
Local Content %
Job Creation : Construction (People)
Job Creation : Operations (People)
Bid Window 2 Bid Window 1
R 2 512
50 MW
R 4 483
R 1 638
36.5%
662
50
R 2 686
150 MW
R 11 365
R 2 391
21.0%
1 165
70
18

Preferred Bidders
Job creation per Province
Description
Eastern Cape Province
Free State Province
Limpopo Province
Northern Cape Province
North-West Province
Western Cape Province
TOTAL
Jobs during construction period
BW2
1 026
140
0
4 709
0
1 184
7 059
Jobs during operations period
BW2
64
32
0
151
0
81
328
19

Description
Northern Cape
Eastern Cape
Western Cape
Free State
TOTAL
Preferred Bidders
Investment per Province
Total Project Cost
(ZAR million)
12 359
8 649
4 684
2 367
28 059
Local content value (ZAR million)
5 837
3 171
1 829
950
11 787
20

Analysis of MW allocation and remaining MW
Technology
Onshore wind
Solar photovoltaic
Concentrated solar power
Small hydro (≤ 10MW)
Landfill gas
Biomass
Biogas
Total
MW allocation in accordance with the
Determination
1 850.0 MW
1 450.0 MW
MW capacity allocated in the First Bid
Submission
Phase
634.0 MW
631.5 MW
MW capacity allocated in the Second
Bid
Submission
Phase
562.5 MW
MW capacity for allocation in future Bid
Submission
Phases
653.5 MW
417.1 MW 401.1 MW
200.0 MW
75.0 MW
25.0 MW
12.5 MW
12.5 MW
3 625.0 MW
150.0 MW
0.0 MW
0.0 MW
0.0 MW
0.0 MW
1 415.5 MW
50.0 MW
14.3 MW
0.0 MW
0.0 MW
0.0 MW
1 043.9 MW
0.0 MW
60.7 MW
25.0 MW
12.5 MW
12.5 MW
1 165.6 MW

Preferred Bidders
Geographic Distribution
22

23