Renewable Energy IPP Procurement
Programme:
Summary of Evaluation Findings
07 December 2011
1
Agenda
 Overview of Evaluation Process.
 Overall Evaluation Recommendation.
 Preferred Bidder technology allocation.
 Preferred Bidder Project Name and MW allocation.
 Findings of Independent Review Team.
2
OVERVIEW OF EVALUATION
PROCESS.
3
Introduction
•
The Minister has determined, in consultation with NERSA, that New Generation
Capacity is required in accordance with the IRP2010.
•
The determination provides for procurement of 3725MW across different technologies
(inclusive of 100 MW Small Projects).
•
Procurement documents were prepared and approved by the DG to procure power
from the private sector. (safe for the 100 MW Small Projects)
•
The procurement documents were released on the 03 of August and compulsory
bidders conference for the first and second window, was on the 14 of September.
•
53 Bids were received by the 4th of November and evaluation was conducted in a
secure environment at Gallagher Convention Centre between the 4th November and
28th November 2011.
•
All evaluation rooms were under 24 hours voice and visual recordings, all the records
are with DoE security for future reference.
•
DoE supply chain was represented throughout the evaluation.
Procurement Process Background
Procurement documents
Request for Proposals
• Part A: General Requirements and Rules
• Part B: Qualification Criteria
• Part C: Economic Development
To be
concluded
in Phase 1
Power Purchase
Agreement
• Wind PPA
• Solar PPA
• CSP PPA
Implementation
Agreement
• Contract between the IPP and the Department
• Obligation for IPP to deliver as per their commitment
• In buyer default – Department to pay the IPP
Procurement Process Background
Request for Proposal (RFP)
RFP Part B
• Requirements
• Rules
RFP Part A
Qualification
• Environment
• Land
• Economic Develop
• Finance
• Technical
• Price
• Capacity
• Price
• Job creation
• Local content
• Ownership
• Management Control
• Preferential Procurement
• Enterprise Development
• Socio-economic
development
RFP Part C
Comparative Evaluation
General Evaluation Observations
• Comprehensive evaluation template developed in accordance with the
RFP prior to accessing the evaluation venue.
• Comprehensive training of all evaluators in all different disciplines the use
of the template.
• Moderation of all evaluators work by independent evaluators.
• Cross moderation in respect of finance.
Evaluation Composition
Evaluation team:
•
International reviewers
•
•
•
•
•
Legal evaluation team
•
•
•
•
•
Bowman Gilfillan,
Edward Nathan Sonnebergs,
Ledwaba Mazwai
Webber Wentzel
Technical evaluation team
•
•
Legal review – Linklaters (UK)
Technical review – Tony Wheeler Consulting
(UK)
Financial review – cross-moderation
between the two Financial Advisor firms
Governance review – Ernst & Young
Matt Macdonald
Financial evaluation team
•
•
Ernst & Young
PWC
Evaluation Streams:
•
•
•
Environment
Land
•
•
•
•
Land right
Application for land use
Municipal land – rights
Own Build – right over land
•
•
Notarial lease registration
Proof of land use application
Commercial legal
•
•
•
Economic Development
•
•
•
Contributor status level
Compliance with threshold
Financial
•
•
Acceptance of the PPA
Project structure
Full and partial price indexation
Technical
•
•
Eligibility
Energy resource
OVERALL RECOMMENDATIONS
(PHASE 1)
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Recommended Preferred Bidders
(Technology allocations)
Allocation to Preferred
Bidders: Window 1
Solar PV
Solar CSP
Wind
Biomass
Biogas
Landfill gas
Small Hydro
Total MW
MW
631.53
150.00
633.99
0.00
0.00
0.00
0.00
1415.52
Total Capacity - Bids Received
Percentage Preferred Bidders
2127.66
66.5%
Number of Passing Bids
Allocation per
Determination
Still Available
Percentage
MW
Percentage
43.6%
818.47
56.4%
75.0%
50.00
25.0%
34.3%
1216.01
65.7%
0.0%
12.50
100.0%
0.0%
12.50
100.0%
0.0%
25.00
100.0%
0.0%
75.00
100.0%
39.0%
2209.48
61.0%
MW allocation
per
Determination
1450.00
200.00
1850.00
12.50
12.50
25.00
75.00
3625.00
28
10
Recommended Preferred Bidders –
Solar PV
Project_Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
SlimSun Swartland Solar Park
RustMo1 Solar Farm
Mulilo Renewable Energy Solar PV De Aar
Konkoonsies Solar
Aries Solar
Greefspan PV Power Plant
Herbert PV Power Plant
Mulilo Renewable Energy Solar PV Prieska
Soutpan Solar Park
Witkop Solar Park
Touwsrivier Project
De Aar Solar PV
SA Mainstream Renewable Power Droogfontein
Letsatsi Power Company
Lesedi Power Company
Kalkbult
Kathu Solar Energy Facility
Solar Capital De Aar (Pty) Ltd
No. of Preferred Bidders for Solar Photovoltaic: 18
Capacity (MW)
5.00
6.76
9.65
9.65
9.65
10.00
19.90
19.93
28.00
30.00
36.00
48.25
48.25
64.00
64.00
72.50
75.00
75.00
631.53
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Recommended Preferred Bidders –
Wind
Project_Name
1
2
3
4
5
6
7
8
Dassiesklip Wind Energy Facility
MetroWind Van Stadens Wind Farm
Hopefield Wind Farm
Noblesfontein
Red Cap Kouga Wind Farm - Oyster Bay
Dorper Wind Farm
Jeffreys Bay
Cookhouse Wind Farm
No. of Preferred Bidders for Wind: 8
Capacity (MW)
26.19
26.19
65.40
72.75
77.60
97.00
133.86
135.00
633.99
12
Recommended Preferred Bidders –
Solar CSP
Project_Name
1
2
Khi Solar One
KaXu Solar One
No. of Preferred Bidders for Solar CSP: 2
Capacity (MW)
50.00
100.00
150.00
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Findings of independent review teams
• Independent legal review
“appropriate process was undertaken to ensure a consistent approach”
• Independent technical review
“TWC is also satisfied that the technical evaluation has been undertaken in accordance
with the agreed methodology”
• Financial cross-moderation
The final results from the financial team reflects the cross-moderation between financial
firms.
• Governance review
“we did not observe evidence of breaches in governance with impact on the validity of the
overall process recommendations”
Thank You
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