THE Department of Energy yesterday released its report on Request for Information which was aimed at potential developers of renewable energy projects in addressing South Africa's energy needs.
The purpose of the RFI, published in September, was to assess the state of readiness of the private sector for participating in renewable energy projects, including the readiness of the market to enter into an accelerated procurement and negotiation process.
These were specifically wind, solar, biomass, biogas, small hydropower and landfill gas as well as co-generation projects under the Renewable Energy Feed-In Tariff programme.
RFI required respondents to provide indicators on readiness of data, readiness of site (including grid connection process), readiness of institutional structure and commitment of lenders.
It was also the first step in the proposed procurement of renewable energy from Independent Power Producers under the Refit programme.
A total of 384 replies for the RFI were processed over the past six weeks and compiled into a preliminary report.
A total of 20 gigawatt of Refit technologies and four gigawatt of co-generation technologies was identified.
"The RFI responses show a substantial interest for investing in renewable energy in the South African market, as well as indicating state of readiness and potential location of proposed projects," said Ompi Aphane, acting deputy director-general, in electricity, nuclear and clean energy.
Using the response a multivariate Readiness Index was developed by the analyst to prove an overview of the status of the projects. This included the status of equity partners, lender commitment, environmental approval process, zoning application, grid readiness, shareholder agreement and other issues.
"The indication from the Readiness Index is that, although there are a number of projects in the pipeline, it is minimal quantities that are sufficiently in a state of readiness to enter into a procurement process and close deals soon after penning a PPA signature (Power Purchases Agreement)," said Aphane.
"According to the information submitted by developers, there are less than 30 projects that have received an indicative quote and a preliminary time-frame for connection.
"Following discussions between the department and lending institutions, banks have committed to conducting their financial due diligence at the bidding phase, in order to reach financial close soon after the PPAs have been signed."
Aphane said the findings of the RFI would be used to guide the department and its support team in the National Treasury in developing criteria for the procurement programme.
The department has targeted the first quarter of next year for the release of the procurement documentation.
Drive to address SA energy needs
THE Department of Energy yesterday released its report on Request for Information which was aimed at potential developers of renewable energy projects in addressing South Africa's energy needs.
The purpose of the RFI, published in September, was to assess the state of readiness of the private sector for participating in renewable energy projects, including the readiness of the market to enter into an accelerated procurement and negotiation process.
These were specifically wind, solar, biomass, biogas, small hydropower and landfill gas as well as co-generation projects under the Renewable Energy Feed-In Tariff programme.
RFI required respondents to provide indicators on readiness of data, readiness of site (including grid connection process), readiness of institutional structure and commitment of lenders.
It was also the first step in the proposed procurement of renewable energy from Independent Power Producers under the Refit programme.
A total of 384 replies for the RFI were processed over the past six weeks and compiled into a preliminary report.
A total of 20 gigawatt of Refit technologies and four gigawatt of co-generation technologies was identified.
"The RFI responses show a substantial interest for investing in renewable energy in the South African market, as well as indicating state of readiness and potential location of proposed projects," said Ompi Aphane, acting deputy director-general, in electricity, nuclear and clean energy.
Using the response a multivariate Readiness Index was developed by the analyst to prove an overview of the status of the projects. This included the status of equity partners, lender commitment, environmental approval process, zoning application, grid readiness, shareholder agreement and other issues.
"The indication from the Readiness Index is that, although there are a number of projects in the pipeline, it is minimal quantities that are sufficiently in a state of readiness to enter into a procurement process and close deals soon after penning a PPA signature (Power Purchases Agreement)," said Aphane.
"According to the information submitted by developers, there are less than 30 projects that have received an indicative quote and a preliminary time-frame for connection.
"Following discussions between the department and lending institutions, banks have committed to conducting their financial due diligence at the bidding phase, in order to reach financial close soon after the PPAs have been signed."
Aphane said the findings of the RFI would be used to guide the department and its support team in the National Treasury in developing criteria for the procurement programme.
The department has targeted the first quarter of next year for the release of the procurement documentation.
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