South Africa to Procure 2000MW Emergency Power From IPP’s

Google+ Pinterest LinkedIn Tumblr +
  • The Department of Mineral Resources and Energy (DMRE) has confirmed that the National Energy Regulator of South Africa (NERSA) is in agreement with a Ministerial determination for the procurement of 2,000MW of emergency power from Independent Power Producers (IPPs).
  • In line with Section 34 of the Electricity Regulation Act, the energy regulator’s accord is required before government is allowed to initiate a procurement programme for new electricity capacity.

According to Engineering News, deputy director-general Jacob Mbele told Parliamentarians participating in a virtual meeting of the committees overseeing the DMRE that the department is currently working with the IPP Office to prepare bid documentation, which would be released between June and July.

In February, the Minister of Mineral Resources and Energy, Gwede Mantashe, sent the two draft ministerial determinations (the Proposed Determinations), prepared in accordance with section 34 of the Electricity Regulation Act, to NERSA.

Thereafter, the regulator published two consultation papers.

The first of the ministerial determinations, titled Concurrence with the Ministerial Determination on the procurement of new generation capacity from the range of energy technologies in respect of 2,000MW and for which the closing dates for comments was 14 April 2020 (the Consultation Paper 1); and the second, titled Concurrence with the Ministerial Determination on the procurement of new generation capacity from Renewables (Wind and Photovoltaic), Storage, Gas and Coal technologies in respect of 11,813MW and for which the closing date for comments was 7 May 2020 (the Consultation Paper 2).

Eskom’s role in the emergency power procurement

Mbele described the receipt of Nersa’s concurrence notice, which had been delivered last week, as a major milestone in opening the way for procurement.

“The DMRE is now working with the IPP Office to prepare documentation for the procurement of the emergency power. We believe that bid documentation should be out within the next month or month-and-a-half at the latest.”

Media quoted Mbele stating that Eskom had agreed to act as the single buyer of the power arising from the emergency programme, revealing that the state-owned utility’s initial risk-sharing concerns had been addressed

Author: Babalwa Bungane

This article was originally published on ESI Africa and is republished with permission with minor editorial changes.


Leave A Reply

About Author

Green Building Africa promotes the need for net carbon zero buildings and cities in Africa. We are fiercely independent and encourage outlying thinkers to contribute to the #netcarbonzero movement. Climate change is upon us and now is the time to react in a more diverse and broader approach to sustainability in the built environment. We challenge architects, property developers, urban planners, renewable energy professionals and green building specialists. We also challenge the funding houses and regulators and the role they play in facilitating investment into green projects. Lastly, we explore and investigate new technology and real-time data to speed up the journey in realising a net carbon zero environment for our children.

Copyright Green Building Africa 2024.