Small-scale IPPs urged not to delay bids
While the Department of Energy (DoE) has indicated that standard documents would be developed to reduce transaction costs related to bidding for the small projects Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), local advisory firm Infrastream director Grant Berndsen has urged prequalified bidders not to delay their preparation for the first Stage 2 submission in anticipation of these documents being released.
The first Stage 2 submission date for prequalified bidders that had submitted proposals during Stage 1 bidding was November 2, while the second Stage 2 submission date was set for February next year.
Infrastream said the transaction costs associated with bidding were a concern for bidders and that, although the Stage 2 process of the small projects REIPPPP was put in place to help bring down transaction costs, bidders still had to meet the requirements of the request for proposals (RFP), which was no simpler than previous editions of the RFP.
It added that, to date, government had given no formal indication that the November submission deadline would be moved or that standard documentation to reduce transaction costs would be made available ahead of this deadline.
“[Therefore], our recommendation to prequalified bidders that are delaying their preparation work in anticipation of the DoE releasing standard documents is to not delay their bid preparation any longer. “Bid preparation is a time-consuming exercise and must begin well in advance of the submission date,” Berndsen said.
He added that, with each successive round of the REIPPPP, competition had increased and tariffs had dropped and, therefore, bidders that had prequalified and had access to the necessary finance should submit on November 2 to take advantage of the likely benefits that come from being an early entrant into the market.
Further, while government had made mention of a fund to assist small independent power producers with transaction costs, this was only expected to be up and running by February next year.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation