Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tender processes used by the government Bid window Sis part of a competitive tender process designed under the REIPPP to facilitate private-sector investment into grid-connected

image text in transcribed
Tender processes used by the government Bid window Sis part of a competitive tender process designed under the REIPPP to facilitate private-sector investment into grid-connected renewable-energy generation in South Africalndepehdent power producers are invited to submit bids for development of onshore wind, solar photovoltaic rev]. concentrated solar power, small hydro. biomass, biogas or landfill gas projects. Submitted bids must first qualify for evaluation by meeting minimum compliance requirements. after which they are evaluated based on price and economic development criteria.Setween 2011 and 2015 four bidding rounds, or bid windows, were completed. Competition has been fierce, with 390 submissions resulting in just under a quarter {92} selected for procurement of SSEBMW amounting to R1 SIS-billion {USDEDS-billionj in investment, according to researchers Anton Eberhard and Raine Maude in The South .afncan Renewable Energy Independent Power Producer Procurement Programme: A Rev'rew and Lessons Learned_Spealvting at the announcement of the preferred bidders of window 5 in Dctober last year, Minister of Mineral Resources and Energyr Swede I'viantashe said the country has so far procured and signed agreements with a total of 93 independent power producer projects totalling T,SDSMW. "Eighty-nine of these projects. including bid window :1 projects signed in 201 B, are already connected to the grid and are supplying SSESMW equivalent to two of Eskom's coal-fired power stations. These include SIS renewable energy projects, two diesel-fired peaking plants, and five small power plants in the form of hydropower, landfill gas and biomass,\" Mantashe saidccording to DiviRE site, most of the responses submitted by the preferred bidders in bid window 5 were well prepared, resulting in a high level of competition. The average price of electricity that would be generated by these projects, including wind and solar P'v', is R4?3.94IMWh.The DtviRE says this is the fewest price achieved by the REIPPPP programme since its inception in 2011] and that the average price would have been even lower if it was not for constraints on the national grid that prevented some of the cheaper projects from being selected as preferred bidders.The department says more investment in grid infrastructure is a critical requirement to ensure participation by cheaper renewable projects in future, especially in those areas with higher solar radiation yield. The 12 wind projects selected as preferred bidders have an average price of RAEEJQII'v-iwh Which of the two steps do you think is better and why? [Emarksj

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quantitative Credit Portfolio Management

Authors: Arik Ben Do, Lev Dynkin, Jay Hyman, Bruce D. Phelps

1st Edition

1118117697, 978-1118117699

More Books

Students also viewed these General Management questions