EE-News

News and announcements from EE Publishers

Issue 274, August 2014

Views and analysis

Procurement models applied to base-load IPP programmes in South Africa

by Brenda Martin and Harald Winkler, Energy Research Centre, UCT

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The Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) is largely viewed as a positive and innovative programme. We need a base-load procurement model that builds on the successes of the REIPPPP and extends these to base-load IPPs. Eskom's future financial health presents a significant risk to procurement of renewables, thermal base-load and nuclear power. The contribution to socio-economic development should be extended to all other IPP procurement. There is signficant risk that political considerations may override rational planning in relation to nuclear power. Procurement should be well-designed upfront, flexible, plans indicative, the regulator active and procurement more vibrantly competitive.

What is the procurement model in South Africa as it applies to renewable energy (RE) and base load (BL) independent power producer procurement programmes (IPPPP) and how might these be improved? What lessons have been learned in the REIPPPP? What challenges might the emerging BL IPPP programme face and how might these challenges be addressed? To what extent are lessons from RE applicable to BL?

This research paper provides conclusions from consideration of these questions, shares research findings, highlights remaining critical questions, and provides recommendations for the future.

Procurement is an aspect of governance, and improved governance is one of five goals of energy policy, as outlined in the 1998 White Paper, which considers procurement as "that step within planning during which government determines what is to be built; and which ends with the announcement of preferred bidder(s)".

Research findings are based on primary data gathered through a literature review followed by interviews with 20 senior respondents from the following zones within the energy sector: government, business, investment, consultancy and advisory, labour and NGOs. A listing of secondary literature consulted is provided on the final pages of this report.

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Industry announcement

Call for Van der Bijl Award sponsors at the 2014 Eskom Expo for Young Scientists

Supporting young scientists is the best corporate social investment spend!

Supporting the annual Eskom Expo for Young Scientists is more than spending a few thousand rands from the corporate social investment budget; it is an investment in the development of skills that must support the future of South African enterprise.

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Last year, local and international sponsors contributed R122 000 in prize money for the 2013 Hendrik van der Bijl Awards programme at the Eskom Expo for Young Scientists, as well as awards in kind such as a Raspberry Pie Computer, equipment vouchers and an opportunity to qualify for a SKA bursary.

Tebatso Jack Senosha from Bokamosos Secondary School presented

with his award in 2013 by EE Publishers managing Director, Chris Yelland,

for his entry "Prosthetic leg with powered joints"

To make awards meaningful to the recipients, it is recommended to make each award worth R5000. It will also be possible to link more than one company to make up R5000 award.

EE Publishers hereby pledges to sponsor a R5000 award, and the industry is challenged to match or better the 2013 contribution total, and thus to make a meaningful contribution to encouraging young people in taking up careers in science, technology and engineering.

To streamline the handling of award funds, EE Publishers will this year again administer the financial aspects of the Hendrik van der Bijl Awards programme free-of-charge.

While the 2014 Eskom Expo for Young Scientists has many more categories, it has been decided to focus the 2014 Hendrik van der Bijl Awards programme on the following categories:

Chemistry
Computer science
Earth sciences
Energy / alternative energy
Electronics / electrical
Metallurgy and mining
Engineering
Geomatics and geographic information science
Environment
Housing and settlement
Innovation / technology
Physics / astronomy

To participate and make your company's mark as a sponsor at the 2014 Eskom Expo for Young Scientists, please contact one of the following to pledge your sponsorship:

Dr. Stafford Smithies, 082 785-0195, stafford@vsaconsult.com

Hans van de Groenendaal, 082 781-4631, hans.vandegroenendaal@ee.co.za

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