The South African government has provided an update on the timelines for the launch of the inaugural procurement of independent transmission projects (ITPs), as well as additional insight into the design of the so-called Credit Guarantee Vehicle (CGV) being set up to de-risk the programme for investors and government itself. In a joint statement, the Department of Electricity and Energy (DEE) and the National Treasury announced that the prequalification tender, or request for qualifications (RFQ), would be issued by the end of July to “shortlist capable, experienced, and financially sound bidders to proceed to the next stage of the ITP procurement process”.
South Africa’s Independent Power Producer Office (IPPO) has confirmed that it is undertaking a comprehensive review of the country’s public procurement framework for independent power producers (IPPs), which has hitherto been dominated by renewable energy. The model was once lauded internationally but is currently facing significant headwinds, with analysis by the University of Cape Town’s (UCT’s) Power Futures Lab showing that of the 14 800 MW tendered since 2020, only 7 343 MW has been awarded, while less than 20% has reached financial close.
The indication by State-owned utility Eskom that virtual wheeling is not yet available to licensed electricity traders is “surprising and disappointing”, EE Business Intelligence MD Chris Yelland tells Engineering News. The company held a webinar about virtual wheeling on June 5, during which Eskom Distribution strategy development senior manager Mutenda Tshipala made this announcement.
Engineering News editor Terence Creamer discusses the OECD’s findings on electricity reform in South Africa, as published in its latest survey of the South Africa economy.
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