IPP connection process
Issue IPP with cost estimate letter
- Upon the receipt of payment (reflected on the Eskom billing system), the cost estimate letter is prepared.
- Necessary feasibility studies are made
- Cost estimate letter signed by all delegated signatories
- Release a non-binding cost estimate letter to IPP developer
IPP Developer evaluates cost estimates
- The IPP developer will evaluate the cost estimates and request any further clarification, and make enquiries if needed.
- Accept or decline the cost estimate letter.
- Budget Quotation request letter completed by the customer and handed to Eskom
For all DMRE regulated programmes -the preferred Bidder Status is determined and announced by the DMRE as “preferred bidders” specific to the procurement programme.
Design concept (prelim design)
- Eskom arranges a scope clarification meeting to be stated in the budget quote
- Completion of all applicable agreements takes place.
Raise and pay commitment fees
- IPP Executive generates an Invoice for Budget Quote fee/Commitment fee as stipulated on the cost estimate letter
- IPP developer pays the commitment or Budget Quotation fee.
Verify concept design (Technical Evaluation Forum (TEF) Approved)
The quotation goes through the Eskom’s governance approval process at CRA (Concept Release Approval) stage
- Once accepted, the projects is updated
- Budget Quotation is prepared and approved by through the Eskom’s governance approval channels
Issue IPP developer the Budget Quotation, and Agreements
- IPP Executive issues the IPP with the Budget Quotation and applicable Agreements
- IPP developer accepts the Budget Quotation and signs the acceptance letter and states his payment options (if applicable)
- IPP Executive generates an invoice for Connection fee as per Budget Quotation and selected payment options
- IPP Developer issues necessary Guarantees to Eskom
- DRA (Design Release Approval) stage gets released/created
- IPP developer signs all Agreements & returns to the Grid Access Project Office
Fulfil all budget conditions / Schedule 11
- IPP developer pays the connection fee and all the necessary payments as agreed
- Eskom confirms that all Budget Quotation conditions have been met
- IPP customer signs and issues the Schedule 11 letter confirming that all Budget Quotation conditions have been met in accordance to the Power Purchase Agreement (PPA) (DMREE regulated programme)
- Eskom ratifies the Schedule 11 letter (the Eskom’s Delegation of Authority determines the signatories that ratifies the Schedule 11 letter
- ERA (Execution Release Approval) stage gets released / created
Milestone schedule within 30 days of Budget Quotation effective date
- Eskom arranges a meeting with the IPP developer and all the stakeholders within 30 days of Budget Quotation effective date to develop the project milestone schedules
Each project milestone schedule is ratified by all parties within that 30 day period