Photo by: Duane Daws
A request for proposals (RFP) for cogeneration power projects will be released in April 2015, Energy Minister Tina Joemat-Pettersson has announced, adding that preferred bidders would be named during the third quarter of 2015.
In line with Gazetted determinations, government would be seeking to secure at least 800 MW of cogenerated capacity, but the Minister indicated that the allocation could be adjusted upwards should there be a strong response to the RFP.
She also revealed that a gas-to-power request for information (RFI) would be released during the course of this month, as a precursor to a process to procure 3 126 MW of gas capacity.
“Responses to this RFI will be used in designing the gas-to-power procurement programme. This programme is expected to stimulate a gas sector, which could contribute to the growth of the economy,” Joemat-Pettersson said, indicating that the Independent Power Producer (IPP) Office, which had run four successful renewable-energy bidding rounds, would oversee the process.
The IPP Office was also overseeing the ‘Coal Baseload IPP Programme’ to procure 2 500 MW from coal-fired power stations of a maximum size of 600 MW a project. The RFP was issued in December and the first coal IPP bid window will close in mid-2015, with preferred bidders to be announced before the end of the year.
The department had also been gathering information on the potential for demand reduction, load shifting and energy efficiency initiatives, having received 150 responses to an RFI by February 2, 2015.
“Twenty-seven of these responses were classified as ‘quick wins’, and 42 were identified as medium-term opportunities,” the Minister said.
“All the responses will be considered during the development of the procurement framework, including medium- to long-term initiatives related to energy efficiency and any other initiative with sustainable impact. The procurement programme is expected to be launched during the second half of 2015.”