Small-scale renewable-energy developers were facing significant challenges in funding their projects, with relatively high compliance costs related to bidding in the Department of Energy’s (DoE’s) small-scale independent power producer (IPP) programme adding to the constraints.

Of the 3 725 MW to be generated through the DoE’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), 100 MW was allocated to the procurement of smallprojects, which individually had to have a generation capacity of between 1 MW and 5 MW.

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South Africa occupies a central position in the global debate regarding the most effective policy instruments to accelerate and sustain private investment in renewable energy. In 2009, the government began exploring feed-in tariffs (FITs) for renewable energy, but these were later rejected in favor of competitive tenders. The resulting program, now known as the Renewable Energy Independent Power Producer Procurement Program (REIPPPP), has successfully channeled substantial private sector expertise and investment into grid-connected renewable energy in South Africa at competitive prices.
To date, a total of 64 projects have been awarded to the private sector, and the first projects are already on line. Private sector investment totaling US$14 billion has been committed, and these projects will generate 3922 megawatt (MW) of renewable power. Prices have dropped over the three bidding phases with average solar photovoltaic (PV) tariffs decreasing by 68 percent and wind dropping by 42 percent, in nominal terms. Most impressively, these achievements all occurred over a two-and-a-half year period. Finally, there have been notable improvements in the economic development commitments, primarily benefiting rural communities. One investor characterized REIPPPP as “the most successful public-private partnership in Africa in the last 20 years.” Important lessons can be learned for both South Africa and other emerging markets contemplating investments in renewables and other critical infrastructure investments.

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Progress on the various electricity generation procurement programmes being overseen by South Africa’s Department of Energy (DoE) is now contingent on the new Cabinet approving further guarantees for Eskom, which remains the single buyer of power generated by independent power producers (IPPs).Deputy director-general Ompi Aphane told Engineering News Online in an interview that the department had been hoping to release bid documentation in May for the baseload-coal andcogeneration procurements programmes, as well as finalise the extension of bid window three under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP).

However, he said Cabinet still needed to sanction the Eskom guarantees, which were necessary to unlock all of the proposed procurement programmes, regardless of whether the power was being procured from renewables, cogeneration or conventional IPPs.

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South Africa’s department of energy (DoE) has announced that it will follow due procurement process to include additional bidders under the renewable energy independent power producer programme (REIPPP) bid window three .At the end of 2013, South Africa’s DoE announced preferred bidders under window three of the REIPPP. During that announcement it indicated it would consider allocating additional megawatts due to the fact that the prices offered by the bidders are competitive, and reflect a downward trend compared to the prices in windows one and two.

The DoE also said that submissions for window four of the REIPPP, which entails the procurement of 1000 megawatts, is on track to close in August 2014.

In line with the DoE programme, and as set out in section 34 of the Electricity Regulation Act, the Ben Martins, the minister of energy has determined that the economy requires additional generation capacity in the form of cogeneration and coal generation. In this regard, the DoE says that it intends to start a process to procure 800 MW of cogeneration to be followed in May 2014 by process to procure 2,500 megawatts of coal-fired generation.

This determination is made under the IPP programme and will complement the capacity that is generated by the IPPs licensed in windows one, two and three.

Source....

Independent power producer (IPP) BioTherm Energy has confirmed that its two 10 MW solar photovoltaic (PV) facilities, Konkoonsies and Aries, have officially entered into commercial operations.

The projects were selected as part of the first bid window under the Department of Energy’sRenewable Energy Independent Power Producer Procurement Programme (REIPPPP).
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South Africa’s Department of Energy (DoE) expects to finalise procurement documents for coal andcogeneration independent power producers (IPPs) before the end of this month and says the requests for proposals (RFPs) should be published in April, once internal governmental approvals have been secured.

In a response to questions posed by Engineering News Online, the DoE confirmed that RFPs would be based on the Ministerial Determinations published in December 2012.

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Eskom confirmed on Friday that it had decided to extend “at risk”short-term electricity purchases from independent power producers (IPPs) and municipal generators to the end of May, despite not having received regulatory approval to do so. However, it was still in discussions with government about securing the necessary financial resources to continue with the contracts after May.

The contracts were initially terminated in December, owing the utility’s perilous cash-flow position – a move which raised much concern in light of the country’s “tight” electricity balance.

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"I run a business in Zambia and I'm busy setting up Solar Farm which will be the largest in the country.

To that effect we have secured a 113 HA piece of land and have a tentative PPA. 
I'm now beginning to look around for established South African businesses that may be interested in some form of a business relationship/partnership. 
My initial minimum output target is 3MW even though the PPA allows for a lot more. My submission indicates that I will be targeting growth in excess of 20MW which has been accepted."
Enquiries.....

Multinational companies are offering Nigerian power purchase agreements.

Cost effective and competitively priced solutions for small-scale on/off grid renewable projects of 3 to 15 MW  are required.

The Nigerian government is actively  promoting renewable energy and IPP licenses, where required, are readily available from Nigerian Electricity Regulatory Commission (NERC).

Further details available.. enquire here.....