The renewable energy independent power producer (REIPP) procurement programme is considered hugely successful for renewables and combines the benefits of an auction-style programme with sufficient criteria to provide assurance that the projects are viable.
Key facts
- Technologies considered – onshore wind, solar PV and CSP, bioenergy, landfill gas, biogas, biomass combustion, and small hydro
- We provided project management and technical advisory services in relation to promotion and development of IPPs and private sector investment into IPPs
- Assisting with review and development of regulatory arrangements.
- Promoting private sector participation in renewable generation.
- Advising the regulator/private sector investors.
- Advising on promotion and development of PPP policy framework.
- Advising on promotion and development of IPPs.
- Drafting/amending project documentation including RfPs, competition design and evaluation criteria, PPAs.
- Conducting evaluation of all bids submitted and coordinating the process.
- Incorporating lessons learned into documentation and process updates.
- Deliverables for phase one were the RfP and six power purchase agreements
- For round 1, our technical advisors reviewed 53 bids in five days
Challenges
- A complex project with challenging hurdles.
- The initial direction of the process was unclear since there was no renewables market in South Africa.
- The project changed course frequently.
Solutions
- The key to the success of the €500B programme was strategic management of the various government stakeholders, which included the National Treasury, the Department of Energy, the Department of Trade and Industry and Eskom.
- A new approach was developed to work within the South African regulatory framework. It enabled the programme to quickly deploy competition and made it relatively easy to evaluate – significantly speeding up the process and allowing for project success.
- Constant change was managed – rethinking direction when something was not working. This led to good results and the client’s happiness with the ultimate deliverables.
- Building a mutually beneficial and trusting working relationship with the client was key to the success of the programme delivery.