Govt invites registrations for energy projects

Posted On Thursday, 09 December 2004 02:00 Published by eProp Commercial Property News
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Government has invited Independent Power Producers (IPPs) to register "expressions of interest" in the development of two new peaking energy generation projects to meet growing energy demands in the country.

Infrastructure IndustryGovernment has invited Independent Power Producers (IPPs) to register "expressions of interest" in the development of two new peaking energy generation projects to meet growing energy demands in the country.

The invitations are particularly aimed at IPP investors including local, black economic empowerment (BEE) and international investors, turnkey contractors, operations and maintenance contractors, fuel suppliers and insurers.
Department of Minerals and Energy Deputy Minister Lulu Xingwana said electronic registrations would enable IPPs to pre-qualify and then to bid for exclusive rights to build, own and operate the new plants, expected to be fully operational by the end of 2008.
The power plant required would be oil-fired open cycle gas turbines (OCGTs) operating as a peaking plant.
"It is expected that proposals for one or two power plants with a combined capacity of about 1000 Mega Watts (MW) will be invited," she said in Pretoria today. 
The plants, costing an estimated R6 billion, would ideally be situated along the country's coastline although this was yet to be finalized.
"Environmental impact assessments will be conducted together with the tendering process so that by the time the tender is awarded, this issue would have been taken care of and we will know where the plants will be constructed," she explained.
Acting Director-General in the department Nelisiwe Magubane said that while energy shortages in South Africa were only expected to be seen around the year 2010, the recent economic boom lead to increased energy use, prompting government to revise that timetable.
"An estimated 12 000 MW of peak generation capacity will be needed for the next 20 years, excluding the capacity provided by the return to service of a mothballed plant," she said.
She further explained that Eskom would be increasing its generational capacity and will have a 70 percent involvement in the new energy production project, while IPPs will have 30 percent involvement.
"Eskom will not be tendering at all, although they will have to provide the market where this energy can be sold," she explained.
Interested parties have been urged to visit the departmental website at for more information and registration instructions.    


Last modified on Monday, 04 November 2013 12:52

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