1. Progress on the Renewable Energy IPP Procurement Programme
November 2013

2. Integrated Resource Plan
New build options
Coal (PF, FBC, imports, own build)
Nuclear
Import hydro
Gas – CCGT
Peak – OCGT
Wind
CSP
Solar PV MW
2010
2011
2012
300
2013
2014
5001
400
2015
2016
100
2017
2018
4004
1004
3004
2019
250
2373
2020
2021
2022
1 1432
805
2023
1 600
1 1832
2024
2832
800
2025
1 000
2026
500
2027
2028
474
690
2029
237
2030
948
Total
6 250
9 600
2 609
2 370
3 910
8 400
First Determination
Second Determination
1. Built, owned & operated by IPPs 2. Commitment necessary due to required high-voltage infrastructure, which has long lead time 3. Commitment necessary due to required gas infrastructure, which has long lead time 4. Possibly required grid upgrade has long lead time and thus makes commitment to power capacity necessary

3. 1st Determination
MW to be procured
1st Determination – 3724 MW of renewable energy of which over 2400 has be procured.
The department and Eskom signed contracts with 47 preferred bidders
Some projects under window 1 are already supplying power into the grid whilst majority are due for connection in 2014
Most window 2 project are under construction and are due for connection into the grid in

4. Second Determination Determination – 3200 MW of renewable energy
19 December 2012 Determinations
Determination – 3200 MW of renewable energy
Added to the current Renewable Procurement Programme
Determination – Base load/ mid-merit
MW of coal based load/ import hydro
MW of gas fired plant mid merit
Separate procurement documents being developed
Determination – Medium Term Risk Mitigation
- 800 MW from cogeneration
- 475 MW from gas of coal base load
Separate procurement documents developed

5. Background To-date, the Department has: With regards to Bid Window 3:
Under Bid Window 1, entered into 28 agreements on 5 November 2012;
Under Bid Window 2, entered into 19 agreements on 9 May 2013.
With regards to Bid Window 3:
Received 93 bids on the 19 August 2013
These bids amount to 6023MW whilst the available MW for allocation was 1473MW
The Department was pleased to note the competitive pricing offered in the bids received

6. Procurement Process Background
Procurement documents
Part A: General Requirements and Rules
Part B: Qualification Criteria
Part C: Economic Development
Request for Proposals
Contract between the IPP and the Seller
Wind PPA
Solar PPA
Landfill gas PPA
CSP PPA
Biomass PPA
Power Purchase Agreement
Contract between the IPP and the Department
Obligation for IPP to deliver on economic development obligations
On buyer default – Department to pay the IPP
Implementation Agreement
To be concluded in respect of all Bid Window 3 projects

7. Contractual Arrangement
IPP
Government
Eskom
Power Purchase Agreement
Implementation Agreement
Government Framework Support Agreement

8. Procurement Process Background
Requirements
Rules
RFP Part A
Environment
Land
Economic Develop
Finance
Technical
Price
Capacity
RFP Part B
Qualification
Economic Development
Job creation
Local content
Preferential Procurement
Enterprise Development
Socio-economic development
RFP Part C
Comparative Evaluation
Request for Proposal (RFP)

9. Overview of evaluation process

10. Evaluation Protocols
Evaluation conducted in a ‘closed’ evaluation environment, under strict security conditions
Members of the evaluation team are ‘ring-fenced’ within each of their firms
Declaration of interest by all firms and individuals involved in the evaluation process
Reports prepared by each discipline reviewed by independent review teams
Overall process reviewed by independent governance review teams

11. PREFERRED BIDDERS

12. Preferred Bidders Summary
No of Bids
MW taken by Preferred Bidders
Maximum MW allocated for Bid Window 3
Solar photovoltaic 6
435
401
Wind 7
787
654
Concentrated solar 2
200
Small Hydro (<40 MW)
121
Landfill gas 1 18 25
Biomass 16 60
Biogas 12
TOTAL 17
1 456
1 473

13. Preferred Bidders Salient Terms Solar Photovoltaic
Bid Window 3
Bid Window 2
Bid Window 1
Price: Fully Indexed (Ave Rand per MWh) (Base Apr ‘11)
R 881
R 1 645
R 2 758
Price: Fully Indexed (Ave Rand per MWh) (Base Apr ‘13)
R 990
R 1 848
R 3 098
MW allocation
435 MW
417 MW
632 MW
Total Project Cost (R’million)
R 8 145 R R

14. Preferred Bidders Salient Terms Wind
Bid Window 3
Bid Window 2
Bid Window 1
Price: Fully Indexed (Ave Rand per MWh) (Base Apr ‘11)
R 656
R 897
R 1 143
Price: Fully Indexed (Ave Rand per MWh) (Base Apr ‘13)
R 737
R 1 008
R 1 284
MW allocation
787 MW
562 MW
634 MW
Total Project Cost (R’million) R R R

15. Preferred Bidders Salient Terms Concentrated Solar Power
Bid Window 3
Bid Window 2
Bid Window 1
Price: Fully Indexed (Ave Rand per MWh) (Base Apr ‘11)
R 1 460*
R 2 512
R 2 686
Price: Fully Indexed (Ave Rand per MWh) (Base Apr ‘13)
R 1 640*
R 2 822
R 3 017
MW allocation
200 MW
50 MW
150 MW
Total Project Cost (R’million) R
R 4 483 R
* Bid Window 3 base price payable for 12 hours every day and 270% of base price payable for 5 “peak” hours every day. This pricing basis is not comparable with Bid Windows 1 and 2.

16. Preferred Bidders Salient Terms Landfill Gas
Bid Window 3
Bid Window 2
Bid Window 1
Price: Fully Indexed (Ave Rand per MWh) (Base Apr ‘11)
R 837
N/A
Price: Fully Indexed (Ave Rand per MWh) (Base Apr ‘13)
R 940
MW allocation
18 MW
0 MW
Total Project Cost (R’million)
R 288
R 0

17. Preferred Bidders Salient Terms Biomass
Bid Window 3
Bid Window 2
Bid Window 1
Price: Fully Indexed (Ave Rand per MWh) (Base Apr ‘11)
R 1 246
N/A
Price: Fully Indexed (Ave Rand per MWh) (Base Apr ‘13)
R 1 400
MW allocation
16 MW
0 MW
Total Project Cost (R’million)
R 1 062
R 0

18. Preferred Bidders Job creation per Province
 Description
Jobs during construction period
Jobs during operations period*
Eastern Cape
512
4908
Free State
414
1443
Gauteng 6
240
KwaZulu-Natal 96
Limpopo
160
1366
Northern Cape
6502
8736
Western Cape
223
1295
TOTAL
7915
18228
* One job = 12 person-months

19. Preferred Bidders Investment per Province
 Description
Total Project Cost **
(ZAR million)
Total Project Value * (ZAR million)
Local content value (ZAR million)
Eastern Cape
3 880
3 520
1 612
Free State
1 253
1 106
574
Gauteng
288
210 88
KwaZulu-Natal
1 062
653
261
Limpopo
952
819
412
Northern Cape
35 747
26 427
12 482
Western Cape
1 230
1 075
528
TOTAL
44 412
33 810
15 957
* Total Project Cost - aggregate Debt and Equity required to fund the Project
** Total Project Value - defined in the IA, used to calculate the Bidder’s local content commitment

20. Preferred Bidders Foreign Investment
Total funding
Foreign portion
% of Total funding
Debt R
R 6 718
15,1%
Equity R
R 8 884
20,0%
TOTAL R R
31.1%

21. Preferred Bidders Economic Development Solar Photovoltaic
Bid Window 3
Bid Window 2
Bid Window 1
Local Content Value (R’million)
R 3 698
R 4 943
R 6 563
Local Content %
53.8%
53.4%
38.4%
Job Creation : Construction (Citizens)
2119
2270
2381
Job Creation : Operations (Citizens)
7513
3809
6117

22. Preferred Bidders Economic Development Wind
Bid Window 3
Bid Window 2
Bid Window 1
Local Content Value (R’million)
R 6 283
R 4 817
R 2 727
Local Content %
46.9%
48.1%
27.4%
Job Creation : Construction (Citizens)
2612
1787
1810
Job Creation : Operations (Citizens)
8506
2238
2461

23. Preferred Bidder Economic Development Concentrated Solar Power
Bid Window 3
Bid Window 2
Bid Window 1
Local Content Value (R’million)
R5 627
R 1 723
R 2 391
Local Content %
44.3%
43.8%
34.6%
Job Creation : Construction (Citizens)
3082
1164
1883
Job Creation : Operations (Citizens)
1730
1180
1382

24. Preferred Bidders Economic Development Landfill Gas
Bid Window 3
Bid Window 2
Bid Window 1
Local Content Value (R’million)
R88
N/A
Local Content %
41.9%
Job Creation : Construction (Citizens) 6
Job Creation : Operations (Citizens)
240

25. Preferred Bidders Economic Development Biomass
Bid Window 3
Bid Window 2
Bid Window 1
Local Content Value (R’million)
R261
N/A
Local Content %
40.0%
Job Creation : Construction (Citizens) 96
Job Creation : Operations (Citizens)
240

26. Analysis of MW allocation and remaining
Technology
MW capacity allocated in First Bid Window
MW capacity allocated in Second Bid Window
MW capacity allocated in Third Bid Window
MW capacity remaining
Solar photovoltaic
632
417
435
1 041
Wind
634
563
787
1 336
Concentrated solar
150 50
200
Small hydro (≤ 40MW) 14
121
Landfill gas 18 7
Biomass 16 43
Biogas 60
Total
1 416
1 044
1 456
2 808

27. Preferred Bidders Geographic Distribution

28. Recommended Preferred Bidders – CSP
Location for window one projects
Project_Name
Capacity (MW) 1
Khi Solar One
50.00 2
KaXu Solar One
100.00
No. of Preferred Bidders for Solar CSP: 2
150.00

29. Thank you For more information visit: www.energy.gov.za and