Question NW2149 to the Minister of Energy
02 July 2018 - NW2149
Khawula, Ms MS to ask the Minister of Energy
Whether any studies regarding (a) costs and (b) feasibility were conducted before signing any of the Renewable Energy Independent Power Producer Programme (REIPPP) deals; if not, (i) why not and (ii) on what grounds and basis were the REIPPPs pursued; if so, (aa) was each study published, (bb) who conducted each study, (cc) was a tender issued to conduct each study, (dd) what was the cost of conducting each study, (ee) what is the title of each study and (ff) where are the copies of the studies available?
Reply:
Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) projects are procured and contracted pursuant to Ministerial Determinations issued by the Minister of Energy, in consultation with the National Energy Regulator of South Africa (NERSA) in terms of Section 34 of the Electricity Regulation Act, No 4 of 2006. Considerations include issues of carbon emission reduction commitments, new technology uncertainties such as costs, operability and lead time to build, water usage, localisation and job creation as well as regional development and integration and security of supply.
Each Independent Power Producer (IPP) participating in the tender process is responsible to undertaking a feasibility of its own project before bid submission to ensure the bankability of the project. At bid submission the IPPs have to comply with various qualification criteria which can only be complied with if they did undertake feasibility studies.
Approved / Not Approved
Mr J T Radebe, MP
Minister of Energy
Date: