Outlining the Renewable Energy Independent Power Producer ...
Outlining the Renewable Energy Independent
Power Producer Procurement Programme
(REIPPPP)
Empowerment Imperative
A presentation made at the Business Opportunities for Women Entrepreneurs
in the Renewable Energy Sector Meeting
Southern Sun Hemmingway, Western Avenue
Ocean View, East London
¡¡±it (REIPPPP) has already established a flagship public-private partnership model for
South Africa, and indeed the rest of Africa, and in the process is helping alleviate
Eskom¡¯s current power crisis while also reducing greenhouse gas emissions.¡±
- Enabling Renewable Energy in South Africa: Assessing the REIPPPP, WWF, August 2014
Presentation Outline
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Policy Background
What is the REIPPPP?
What is an IPP?
Why are IPPs a good option for Government?
Role of IPP Office
IPPPP Procurement Design, Process &
Requirements
The REIPPPP in the Eastern Cape
How is the REIPPPP empowering women?
Construction Phase Opportunities
Operations & Maintenance Business Opportunities
Concluding Remarks
June 18
2
Policy Background
1. NDP:
- SA must invest in a strong network of economic
infrastructure to support its economic & social
goals.
- 10, 000 MW additional electricity capacity by
2019, against the 2010 baseline of 44,000 MW.
2. IRP 2010:
NDP
IRP
2010
- Energy mix to meet electricity needs of SA over
20 year horizon to 2030.
- By 2030 ¨C 17,800 MW of electricity from RE
sources: 5,000 MW by 2019 + 2,000 MW
operational by 2020.
3. REIPPPP:
- A programme designed to respond to the call by
the NDP & the IRP 2010 via renewable energy
sources
15 June 2018
REIPPPP
- Economic growth
- Strong economic
infrastructure
- 10,000MW by 2019
- Energy mix
- 17,800 MW RE by
2030:
- 5,000 MW by 2019
+ 2,000 MW by
2020
- 6,422 MW procured
from 112 IPPs in 7
rounds
- 3,773 MW from 62
IPPs connected to the
grid by end Dec 2017
3
What is the REIPPPP?
- Programme developed by DoE.
- Response to 2008 energy supply
constraints, NDP & IRP 2010.
Aim:
- To secure electrical energy from
private sector via renewable energy
sources to add to the national grid.
- e.g. Solar PV, Onshore Wind, CSP,
Small Hydro, Biomass, Landfill Gas.
- Also structured to contribute to
broader national development
objectives, specifically:
? Job creation
? Social upliftment
? Broadening economic ownership
15 June 2018
?
?
?
?
6,422 MW
112 IPP Projects
7 Bid Windows
3,773 MW; 62 IPP
Projects connected to
grid
-
-
R 201.8 billion
investment
attracted
34, 841 job
years for SA
citizens
? R504.9 million
SED
Contributions
? R166.3 million
ED Contributions
4
What is an IPP?
Foreign
shareholders
A Company (Consortium) established
by a range of shareholders for the
purposes of bidding for, constructing
and operating an independent power
plant. Typically the IPP Company
structure could consist of:
? Black
Industrialists
(increasing
shareholding with projects to be
signed having an average of 40%
shareholding)
? Other South African shareholders
? Community Trusts representing the
local communities where the projects
are located
? Foreign shareholders bringing foreign
direct investment (FDI) that improves
the country¡¯s balance of payments as
well as expertise
Community
Trust
IPP
Company
South African
shareholders
Black
Industrialists
5
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