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Eskom’s comment on the announcement of the commercial close of the renewable energy Independent Power Producer Procurement Programme Bid Window 5 (REIPPPP BW5)

Thursday, 12 May 2022: Eskom acknowledges and welcomes the Department of Mineral Resources and Energy’s (DMRE) extension of the commercial close timelines for the 25 preferred bidders announced under the Renewable Independent Power Producer Procurement Programme Bid Window 5 (REIPPPP BW5) with all projects expected to sign project agreements by no later than end of September 2022.

Eskom’s Grid Access Unit (GAU) would like to re-iterate its support to the Programme, and to clarify the following regarding the REIPPPP BW5, as well as the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) and the non-DMRE projects (the so-called “100MW reform” projects):

  1. As selected by customers and IPPs, these are all self-build projects.
  2. In the self-build project process, the IPPs are responsible, for among others:
    a. Paying the Quotation Fees without delay (when requesting the Budget Quote (BQ), and by accepting all the Cost Estimate Letter (CEL) conditions).
    b. Presenting designs to Eskom for review and implementing the recommendations, as part of the BQ development process.
    c. The duration of meeting all the BQ conditions, when accepting the BQ.
    d. The Environmental Impact Assessment (EIA), procurement, and construction work, depending on the specific technical scope of each project.
    e. The commissioning timelines, until the eventual operation of the IPP projects.

IPPs and Eskom therefore work on a collaborative basis, on BQ development and execution. Therefore, Eskom is not in control of some activities.

The commercial close date is therefore specifically dependent on the IPPs:
i) Paying quotation fees and accepting their CELs, immediately after announcement of the preferred bidder.
ii) Submitting designs on time.
iii) Reviewing designs with Eskom in time, dependent on (ii) and on agreed upon self-build activities.
iv) Fulfilling other requirements to enable BQ development and conclusion.

Eskom would like to reiterate that it is committed to meeting the BQ dates, in support of IPPs’ requirements, including the signing and commercial close dates of the DMRE Programme timelines.

ENDS

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