1. Discussion Materials
Overview of the Power Sector in South Africa
22 September 2015

2. Overview of the Power Sector in South Africa

3. 2012A 2017E CAGR12-17
Capacity (MW) 44, 289 57, 462 5.4%
Net Capacity Addition (MW) - 13, 173 -
Electrification rate 76% - -
Capacity by Fuel
South African Electricity Market
Key Statistics Market Overview
Capacity Evolution
44,289 45,561
49,579
52,478
55,462 57,462
0
20,000
40,000
60,000
2012 2013 2014 2015 2016 2017
MW
81%
16%
3%
___________________________
Source: BMI Country Report. http://www.ipp-projects.co.za/
Note: (1 ) IRP 2014 is still in draft form and is yet to be promulgated
91%
5% 4%
Governing
bodies
 The Department of Energy (DOE) and the National Energy Regulator of South
Africa (“NERSA”) are responsible for setting energy policies and regulation of
the energy sector respectively
 They determine critical aspects such as the framework for procurement of new
generation capacity and consumer pricing regimes
Market
 South Africa’s electricity market is dominated by the 100% state –owned utility
Eskom which generates 95% of the electricity produced in the country and 45%
of electricity produced on the continent
 As the only transmission licensee, Eskom is responsible for all transmitted
electricity
 Distribution is shared between Eskom, municipalities and other licensed
distributors
Energy
Agenda
 The DOE’s Integrated Resource Plan (“IRP”) 2010 to 2030 (1) puts a framework
in place that sets out the scale and mix of new electricity required over the next
two decades
 Programmes identified in the IRP include:
 The Renewable Energy Independent Power Producer Procurement
(REIPPP) Programme which is aimed at procuring 6,925 MW of renewable
energy
 The base-load programme which is aimed at procuring 7,761 MW of base
load capacity comprising 2,500MW from coal , 2,652MW of gas power and
2,609 MW of imported hydro power . The Minister has since released a
Ministerial Determination for 3,126MWs of gas-to-power projects.
 “The medium term risk mitigation” programme aimed at mitigating against
supply-demand shortfalls in the medium term, comprising 800 MW from
cogeneration and 474 MW of natural gas
 DOE Peaker programme is a long standing DOE initiative that involves
purchasing power from independently owned Avon (670 MW) and Dedisa (335
MW) power plants (OCGTs)
Natural
Resources
 South Africa has the world's ninth-largest amount of recoverable coal reserves
and holds 95% of Africa's total coal reserves
 Positioned as the fifth-largest gold producer and accounts for over 6% of the
world’s output
 In 2013, accounted for an annual production of c. 5 million ounces
 South Africa is also one of the world’s largest producer of platinum
 In 2013, provided two thirds of the world’s platinum mining output
 South Africa produces about 190,000 barrels of oils each and every day land is
looking into more prospects with the opening up of new oil wells to expand the
business
 Currently importing oil and have not reached a capacity to export any oil
From 2014 to 2017
 4800 MW of REIPPP projects
 + 800 MW cogeneration + 474MW natural gas, medium term risk mitigation
programme
 +/- 1800 MW of Eskom large coal projects (Medupi and Kusile)
Contentional Thermal
Renewables (incl. hydro)
Non Hydro Renewables
1

4. South African Electricity Market (cont’d)
Overview
 The generation landscape is gradually shifting
from single player dominance to a relatively
open/competitive system
 Single buyer model – Eskom monopoly
 Interface with IPPs through 2 units. (i)
Eskom’s grid access unit managing
connection to the grid (ii) Single Buyer Office
(“SBO”) buying power from IPPs
 Eskom distributes close to 60% of electricity
sales with municipalities and other licensed
distributors distributing the balance of
electricity sales
Participants
 Eskom the 100% state owned utility generates
c. 95% of South Africa’s electricity
 Eskom operates 27 power stations with a total
nominal capacity of 41,995 MW, comprising
35 726 MW of coal fired stations, 1 860 MW of
nuclear, 2 409 MW of gas fired, 2 000 MW
hydro-and pumped storage as well as a 3 MW
wind farm
 Transmits, distributes and retails electricity
 Length of power lines : 359,337 km
 # of customers: 800 Municipalities, 3 000
industrial, 1000 mining, 50 000 commercial,
84 000 agricultural and 5.1million residential
 Supply sales (TWh): 217.903
IPPs(1)  The REIPPP programme
 Launched in 2011 and has generated a
total of 64 renewable energy IPPs across
3 of 5 competitive bidding rounds
 The 92 successful projects incorporate
more than 100 different shareholder
entities
 Prominent equity players across the
bidding rounds include AIIM, Mainstream,
Mulilo and Enel Green Power amongst
others
 DOE Peaker programme
 On June 2013, a consortium led by GDF
SUEZ signed PPAs with Eskom for two
greenfield open-cycle turbine power
plants with a combined capacity of 1 005
MW
Municipalities &
licensed
distributors
 Distributes c. 40% of electricity sales to
customers. Key Municipalities include:
 Buffalo City
 City of Cape Town
 City of Johannesburg
 eThekwini Electricity
 Ekurhuleni Metropolitan
 City Power Johannesburg
 Grid length: undisclosed
 Supply sales (TWh): undisclosed
 Ownership: 100% state owned
Generation
Transmission/
Distribution
Wholesale / Retail
___________________________
Source: Company data, Press.
Note: (1 ) South Africa’s Renewable Energy IPP Procurement Programme: Success Factors and Lessons, World Bank Group
2

5. South African Electricity Market (cont’d)
South Africa Transmission Network
Regional Interconnection Grid
Northern Cape
Eastern Cape
Limpopo
Free State
Western Cape
North West
KwaZulu-Natal
Mpumalanga
Gauteng
Substations Future
Substations Current
Lines Future
132
220
275
400
765
Lines Currrent
132
220
275
400
533
765
ture
220
275
400
765
Lines Currrent
132
220
275
400
533
765
___________________________
1. Eskom website, SAPP website.
Comments
 The Strategic Grid Plan represents the transmission network
infrastructure requirements for a period of 10 years and is
updated annually
 The purpose is to optimally and reliably transport the power
from the source of generation to the location of the load
 South Africa’s Eskom forms part of the Southern Africa Power
Pool (“SAPP”)
 SAPP was formed to provide reliable and economical
electricity supply for the consumers of each SAPP member
consistent with the reasonable use of natural resources and
the effect of the environment
 Eskom exports power to SAPPP as a member of Southern
Africa Development Community (“SADC”)
 EDM of Mozambique, ZESA of Mozambique and Eskom of
South Africa have MoUs to develop interconnectors to
increase power transfers and stability within the SAPP network
 The Interconnector projects will involve the separate
development of the following sections of the project
 In Zimbabwe
 400/330 kV new substation at Triangle
 400/330 kV new substation at Orange Grove
 Zimbabwe to South Africa
 275km 400kV line Triangle-Nzhelele Interconnector
(Zimbabwe-RSA)
 New Nzhelele substation 400kV line bay
 Zimbabwe to Mozambique
 185km 400kV line Orange Grove – Inchope
Interconnector (Zimbabwe-Mozambique)
 Establishment of the new 400/220kV Inchope
Substation in Mozambique
 360km 400kV Inchope - Matambo line
 115km 400kV Matambo – Songo line
3

6. South Africa Renewable Energy IPP Programme Overview

7. REIPPP Overview
General REIPPP RequirementsREIPPP Overview
IPP
PPA
National Energy Regulator of
South Africa (NERSA)
Eskom (State Owned Utility)
South Africa
Department of Energy (DoE)Implementation Agreement
Generation
Licence
Connection Agreement
REIPPP
Programme
 The South African government’s Integrated Resource Plan (“IRP”)
sets an ambitious target to add 50,000 MW of new generation
capacity to the South African grid by 2028 with renewable energy
technologies accounting for approximately 42 per cent of this target
 It is against this background that the South African government,
through the Department of Energy (“DoE”), launched the
Renewable Energy IPP Procurement Programme in August 2011
 Under the programme, the DoE initially mandated the procurement
of up to 3,625 MW from IPPs of various renewable energy
technologies including : wind, solar photovoltaic, concentrated
solar power, biogas, biomass, small hydro and landfill gas. An
additional 3,100 MW was subsequently made available for
procurement under the REIPP Procurement Programme
REIPPP
Tender
Design
 Under the REIPP programme, bids are invited from developers in
sequential bidding rounds, or “windows”. To date, there have been
four bidding windows, with the fifth expected to take place in early
2016. Potential bidders are required to register basic details of their
proposed project(s) approximately two months ahead of the
relevant bid window and unsuccessful projects can be bid again in
future windows
 In each bid window, a maximum number of megawatts is made
available for each applicable technology and a price cap is set
(although the DoE has now removed the price cap for all the
technologies, having concluded that intense competition has driven
down prices and rendered a cap redundant)
Project
Structure
 This requires a bidder to provide, among other things, a
structural diagram showing its debt and equity participants,
contractors and key equipment suppliers
Legal
Requirements
 This requires a bidder to indicate, among other things, its
acceptance of the terms of the PPA, IA and the other
designated project agreements
Land
Requirements
 This requires a bidder to show, among other things, that it has
secured the project site, identified all permits and licences
required for the project with respect to land rezoning,
subdivision and water use
Environmental
Requirements
 A bidder must provide, among other things, the environmental
authorisation and related documents
Financial
Requirements
 This requires a bidder to specify, among other things, its
price, identify its method of financing the project and
demonstrate that it has made sufficient progress in securing
financing for its project and the necessary proof of its ability to
raise such financing
Technical
Requirements
 A bidder is required to provide, among other things,
information on the technology to be used, resource data,
contractor capability and track record and a cost estimate
letter for grid connection
Economic
Development
 A bidder must make binding commitments (during both
construction and operations phase) with respect to share
ownership by black South Africans and local communities,
local content, job creation, preferential procurement,
management control, socio-economic development and
enterprise development
Value for
Money
 Each project must provide net benefit to the South African
government and consumer taking into account, without
limitation, the price offered, the bidder’s internal rate of return
and level of success payments
 The bid documents contain detailed and complex requirements. Bid responses must
comply with all of the qualification criteria to be compliant
 The qualification criteria requires bidders to provide detailed responses as to the extent
of their readiness to deliver their projects in key areas such as project structure,
compliance with specific legal, land, environmental, financial, technical and economic
development requirements. Detail on each of these requirements is shown below:
 The commercial structure of the REIPPP is shown below:
4

8. South Africa Power and Energy Sector Overview
IPP Procurement Programmes
Renewable
Energy
Program
 Total of 7, 025 MWs of renewable energy
across five different phases
 Technologies include wind, solar pv,
solar thermal, biomass, mini-hydro, landfill
gas
 Program is currently in its fourth phase
Baseload
IPP
Procureme
nt Program
 Coal - 2,500 MWs which will be divided
into
two phases to commence in 2015
 Import hydro - 2,690 MWs
 Gas – 3,126 MWs
Medium
Term Risk
Mitigation
Projects
 Cogeneration - 800 MWs
 Gas OCGT/ (MTRMP) - 474 MWs
 The cogeneration
programme is expected to
commence in Q3 2015
You may be interested in the upcoming 2,500MW coal baseload programme and the 3,126 MW gas
baseload programme
 A summary of the IPP programmes is shown below:
2,500
2,690
2,652 7,842
Coal Import Hydro Gas Total
MW
800
474 1,274MW
Cogeneration Gas
OCGT
Total
The Energy Regulatory Framework
 South Africa has put into place transformative policies to ensure energy supply
security and this is demonstrated in a number of legislative actions including the
White Paper on the Renewable Energy Policy of RSA (2003), the National Energy
Bill (2008), and the National Energy Act (2008)
 The Integrated Resource Plan 2010-2030 (“IRP 2010”) developed by the
Department of Energy (“DoE”) is a public policy document that outlines the energy
mix contemplated for South Africa until 2030
 The DoE is in the process of implementing the following IPP Programmes:
Renewable Independent Power Producer Procurement Programme (“REIPPPP”),
the Baseload IPP Procurement Programme and the Medium Term Risk Mitigation
Programme
Successful Renewable Programme to Date
Commentary
 There is an immediate opportunity to participate in the Coal Baseload Programme
 The Coal Baseload Programme Request For Proposals document (“Coal RFP”)
was released on 15 December 2014 to potential bidders and bid responses for
round 1 of the programme will be due on 8 June 2014
 The Coal RFP states that a total of 1,600 MWs will be procured in round 1 of the
programme with 1,000 MWs being allocated to projects within South Africa and 600
MWs from outside of South Africa
 There is a longer term opportunity to participate in the gas baseload programme
and the hydro programme which will be undertaken following the coal base load
programme
2,820
3,325
600 280 7,025
Solar PV Wind CSP Other Total
MW
___________________________
Source: NIPP website, Department of Energy website
 The REIPPP programme has generated 92 new renewable energy IPPs across the
four bidding rounds to date totaling R193 billion in investment has been committed
for the construction of over 6,200 MWs of capacity in technologies like onshore
wind, solar PV and concentrated solar power
 The DOE issued a media statement in April 2015 stating the intention to launch an
expedited procurement process of 1,800 MWs from all renewable technologies. The
RFP was issued in June 2015
Energy
Allocation per
Determination
Energy
allocated
(Round 1- 4)
Remaining
Energy (MW)
Remaining
Energy
(%)
Wind 3 325 MWs 2 656 MWs 669 MWs 20%
Solar PV 2 820 MWs 1 899 MWs 921 MWs 33%
CSP 600 MWs 600 MWs 0 MWs 0%
Landfill/ Biomass/
Hydro/ Biogas
280 MWs 79 MWs 201 MWs 72%
5

9. REIPPP Overview (Cont)
REIPPP Programme to Date
REIPPP Competitiveness & Trends(1)
Socio Economic Features of REIPPP
South African
Participation
 A bidder must ensure that at least 40 per cent of the beneficial
shareholding in the project company is directly or indirectly held
by South African citizens
Job Creation
 Each bidder must make commitments to ensure that a certain
percentage of its employees during the construction and
operation phase are South African citizens of which a certain
percentage must be black South Africans
Local Content
 This is intended to measure the construction expenditure of a
project and to express the South African products and services
component as a percentage of the total project cost
 Local content minimum threshold requirements have increased
and require a minimum SA entity participation of 40%, a BEE
contributor status level of 5, indicating the extent of the South
African entity participation
Local
Community
Ownership
 This requires a bidder to ensure that the project company
allocates a certain percentage of its ultimate beneficial
shareholding to local communities this requires a bidder to
ensure that the project company allocates a certain percentage
of its ultimate beneficial shareholding to local communities
Socio
Economic
Development
 This requires a bidder to identify socio-economic needs of the
surrounding communities where the project site will be located
and formulate strategies on how such needs could be met
utilising the socio-economic development financial contributions
Management
Control
 Commitments that a certain percentage of the project
company’s management will comprise black South Africans
Enterprise
Development
 Commitments to initiatives that will enhance the capacity of
emerging businesses owned/controlled by black South Africans
Preferential
Procurement
 Commitments to procure goods and services from businesses
owned or controlled by black South Africans
 The REIPPP programme has generated 92 new renewable energy IPPs across the
four bidding rounds to date
 R193 billion in investment has been committed for the construction of over 6,200 MW
of capacity in technologies like onshore wind, solar PV and concentrated solar power
 The DOE issued a media statement in April 2015 stating the intention to launch an
expedited procurement process of 1800MW from all renewable technologies. The RFP
has been issued
114.3
275.8 302
-
89.7
164.5
282
140
65.6 88.1
164
0
100
200
300
400
Onshore Wind Solar
PV
Concentrated
Solar Power
Biomass
REIPPP 1 Average Bid Prices REIPPP 2 Average Bid Prices REIPPP 3 Average Bid Prices
Project
Evaluation
 Project evaluation is based on a weighting of 70:30 ratio of price to
economic development criteria
Average
Tariffs
 Increased competition across the bidding rounds have seen
average tariffs of IPP preferred bidders drop dramatically
 Onshore wind tariffs have dropped close to 43% ,with Solar PV
tariffs having dropped 68% and concentrated solar power tariffs
having dropped close to 46%
 Certain criteria have been designed to advance the South African government’s socio-
economic development policy objectives
 Most of these criteria have minimum compliance thresholds as well as higher targets
which a bidder can commit to if it wishes to enhance the competitiveness of a bid at the
evaluation stage.
ZAR cents / kWh
Technology,
MW
Round 1 Round 2 Round 3
Round
3.5
Round 4
Round
4.5
MW Capacity
remaining
Solar PV 631.8 417.12 435 415 687 626.08
Wind 634.10 558.90 787 676 398 664
CSP 150 50 200 200 - -
Small hydro - 14.40 - 5 115.6
Landfill Gas - - 18 - 7
Biomass - - 16 25 19
Biogas - - - - 60
Total 1,415.9 1,040.42 1,456 200 1,121 1,085 1,691.68
___________________________
Source: Company data, http://www.energy.gov.za/IPP/List-of-IPP-Preferred-Bidders-Window-three-04Nov2013.pdf
1. Refers to Round 1 to 3.
6

10. REIPPP Overview (Cont)
 One qualification criteria which has become a key part of the programme is the
engineering, procurement and construction (“EPC”) arrangements. A bidder has to
provide details of its EPC contractor, including its track record and capability in building
the power plant
 Although this is not a specific bid compliance requirement, a competitive EPC price is
essential for a successful project and a balance needs to be struck between risk transfer
to the EPC contractor and price. Lenders will want the project company to be insulated
from risk, yet a blanket approach will not be accepted in the market. With experienced
and well resourced sponsors in place, there is scope for the project company to take on
appropriate risks – but this is all in the context of fixed “upstream” project documents (the
PPA and IA) that govern the process and place fixed obligations and timings on the
project company.
 These documents (and their impact on the EPC and operations and maintenance
arrangements) need to be understood, as they establish a framework for the
construction and operation of the projects.
 The correct flow-through of processes (in particular during commissioning and
commercial operation) and project relief (whereby the EPC contractor’s relief under the
EPC contract is limited to that which the project company obtains under the project
documents) are essential and must be considered pragmatically and commercially.
 Other key issues that need to be addressed include:
 dealing with delays caused by Eskom (in particular in relation to grid connection);
 site risk under the PPA;
 site access;
 payment structures and security;
 how issues particular to the local construction market can impact on construction
and operation;
 exchange rate risk;
 economic development obligations; and
 access to the transmission or distribution system.
 With continued pressure on tariff pricing there may be a move towards split contract
structures (where the project company employs an equipment supplier and a separate
balance of plant contractor – and manages the interface between the two).
The Role of EPC & Bidding Considerations Challenges and Lessons Learned
Simplified
Bidding
Requireme
nts
 The cost of bidding has been high due to the detailed and complex
nature of the bidding requirements. The DoE has sought to simplify
bidding requirements (and therefore lower bidding costs) by making
the following changes to the bid documents for the remaining
bidding rounds:
 Bidders no longer need to submit shareholders’ agreements in
respect of the project company or heads of terms with their
contractors and key equipment suppliers at the time of
submission. This eliminates advisory and other associated
costs incurred through negotiating these documents at the bid
stage;
 Certain licences and consents are not required until the
preferred bidder stage;
 The terms on which lenders can issue a letter of support to
provide debt financing have been relaxed; and
 Bidders only need to provide two hard copies and a soft copy
of the bid response as opposed to seven hard copies and
seven soft copies as was the case in previous bid windows.
Licenses
and
Consents
 Currently, the requisite licences and consents are obtained under
different pieces of legislation and from different government
departments with different timings and procedures. A single
umbrella legal framework for renewable energy procurement with a
“one-stop shop” government department for licenses and
consents would make the bidding process more efficient and this
would also help reduce the costs associated with liaising with
different departments
Project Site
 Securing the project site is a key component of the bidding process.
It is therefore important for a bidder to identify the project site and
conclude the necessary contracts in sufficient time to ensure that
the land arrangements meet land use and acquisition criteria. It is
also important for bidders to resolve any land tenure issues such as
any third party rights, existing mortgages
Grid
Connection
 Due to financial constraints, there have been concerns regarding
Eskom’s ability to build the network infrastructure necessary to
connect the large number of successful projects to enable them to
achieve commercial operations within the time frames specified in
the PPAs. In addition, grid connection costs have now become an
issue as the initial cost estimate letters provided by Eskom at bid
submission vary substantially from subsequent budget quotes
provided to preferred bidders. This has caused a delay in
successful third bid window projects reaching financial close
7

11. REIPPPP: Expedited Bid Submission Window
The Minister of Energy announced that the Department of Energy would be issuing Request for Proposals
(“RFP”) for an expedited renewable energy IPP procurement process, for which 1,800 MW would be allocated
MW Allocation and New Price Caps
Key Dates
Overview
650
520
450
100
40 25 15
0
100
200
300
400
500
600
700
Onshore
wind
Solar PV CSP Biomass Small hydro Biogas Landfill gas
R760/
MWh
R870/
MWh
1,370/
MWh
1475/
MWh
1117/
MWh
1475/
MWh
990/
MWh
 The Expedited Bid Submission Window (“EW”) was
released June 2015 by the Department of Energy (“DoE”)
 The EW is open to all projects that are ready for
submission within the required timelines, and not only to
projects which were unsuccessful in previous bid
submission phases
 The Minister has allocated 1,800 MW to be allocated during
the EW. However, the Department is not obliged to allocate
all 1,800 MW during the EW
 It is also anticipated that the Minister will issue a Third
Determination that will provide for the procurement of a
further 6,300 MW to be generated from renewable energy
sources
 The EW RFP is one of the various procurement processes
that the Government will develop to procure this further
generation capacity from renewable energy sources
 Interested parties have until 6 October to respond to the
RFP, the DoE has advised bidders to apply for cost
estimate letters from the relevant grid provider as soon as
possible
The Price caps per Technology have been updated. Notably the Department has elected
once more to impose a Price cap on Onshore Wind and Solar PV technologies. Previously,
the Price cap was removed for these Technologies
3 Jul ‘15 8 Sept ‘15 8 Oct ‘15
Release of the EW
RFP volumes
Expedited bid
submission date
Signing of PPA, IA, DA, Connection
Agreements and Financial Close
11 Dec ‘15 31 Jul ‘16 31 Dec ‘19
Bid registration date Announcement of
preferred bidders
COD proposed by a bidder to
fall before D3c 2019
___________________________
Source: IPPRenewables
MW
8

12. Cogeneration IPP Procurement Programme Overview
On 4 June 2015, the DoE issued request for bids for the Cogeneration Independent
Power Producers Procurement Programme due 10 August 2015
MW Allocation & Price Caps
Key Dates
 The DoE issued a request for bids for the Cogeneration IPPP. The
total MW is 800MW to be allocated for the first bid window across the
technologies is as follows:
 Waste to Energy (200MW): The primary permitted fuels are
waste heat, process furnace off-gas and any other non-
renewable energetic waste emitted from an industrial process.
However waste or discard coal is not a permitted primary fuel
under the programme
 Combined Heat and Power (250MW): The primary permitted
fuels are coal, waste or discard coal, natural gas and primary
liquid fuels
 Industrial Biomass (350MW): The primary permitted fuels are
sugar bagasse, field trash and other sugar related renewable
wastes associated with the host facility process; mill wastes,
including chips, saw dust, shavings, soaps, methanol, sludges,
bark and black liquor; and agricultural or forestry residue
including alien vegetation clearing
 It is anticipated that there will be four bidding windows under the
Cogen IPP Procurement
 The first bidding window bid submission date and announcement
date on 10 August 2015 and 17 September 2015 respectively
 It is anticipated that the second bid submission date will be 1
September 2015, the third bid submission date will be 27
October 2015 and the fourth bid submission date will be 23
November 2015
Overview
22 Jul ‘15
10 Aug
‘15
17Sept
‘15
Notify DoE on intention to
submit a bid response
Announcement of
preferred bidders
11 Nov
‘16
Bid registration date
due
Projects bid to reach
COD before this date
R0.90 /kWh
350
250
200
0
100
200
300
400
Industrial Biomass Combined Heat and Power Waste to Energy
MW
R1.00/kWh R1.20 /kWh
Price caps for each technology under the first bidding window
___________________________
Source: DoE
The Cogen IPP Procurement Programme has two common characteristics across all the technologies. First, the fuel and / or energy source originates from
an underlying industrial process and secondly, the cogeneration facility is coupled to the industrial process of a host plant
9

13. ● Following from accelerating and expanding REIPPP in August 2015, the Minister issued a determination in August 2015
for an additional 6,300MW of capacity allocation for future bid windows under REIPPP
● The additional MW made available by this determination are to be allocated across technologies as follows:
● Onshore wind 3,040MW, solar PV 2,200MW, CSP
● With this determination, the capacity allocation for the procurement of new generation capacity in future bid windows
will almost double from previous determinations which totaled 6,725MW
● The Minister has also issued a separate gas-specific determination stating that new generation capacity for the
procurement of 3,126 MW can come from any gas type or source
● This includes natural gas delivered to the power generation facility by any method (including by pipeline from a natural
gas field or elsewhere or a liquefied natural gas (LNG) based method), coal bed methane, synthesis gas or syngas,
above or underground coal gasification, shale gas and any other gas type as may be considered appropriate
● The Minister has issued an amendment to the existing determination relating to the Medium Term Risk Mitigation
Project IPP Procurement Programme 2012 by including additional capacity allocation for new generation capacity for
the procurement of 1,800 MW to be generated from:
● Waste heat or furnance off gas
● Cogeneration (i.e. the simultaneous generation of electricity and useful thermal energy from a common fuel
source); and
● An energy source which is a co-product, by-product, waste product or residual product of an industrial
process and / or sustainable agricultural or forestry activity
South Africa Renewable Energy IPP Programme Overview
Significant Announcements on SA’s Energy Programmes
In August 2015, the Minister of Energy issued new ministerial determinations for
additional capacity allocation for the country's renewable energy, gas and cogeneration
programmes
New Renewable Energy Determinations
The renewable energy determination provides the desired certainty that there will be a pipeline of renewable energy projects in South Africa’s
procurement of much needed new electricity generation capacity. The determinations on gas and cogeneration projects signal the government’s
commitment to diversify South Africa’s energy mix
___________________________
Source: The Department of Energy
Renewable
Energy
Gas
Cogeneration
10

14. Appendices

15. REIPPP Round Winners
List of successful bidders in the REIPPP program
Round 1 Winners Round 2 Winners Round 3 Winners Round 4 Winners
Solar CSP = 2 deals MW
Khi Solar One 50.00
KaXu Solar One 100.00
TOTAL 150.00
Onshore Wind = 8 deals
Red Cap Kouga Wind Farm- Oyster Bay 77.60
Cookhouse Wind Farm 135.00
Dorper Wind Farm 97.00
Noblesfontein 72.80
Dassieklip Wind Energy Facility 26.20
MetroWind Van Stadens Wind Farm 26.20
Jeffreys Bay 133.90
Hopefield Wind Farm 65.40
TOTAL 634.10
PV = 18 deals MW
Slim Sun Swartland Solar Park 5.00
RustMo1 Solar Farm 6.80
Mulilo Renewable Energy Solar PV De Aar 9.70
Aries Solar 9.70
Konkoosies Solar 9.70
Greefspan PV Power Plant 10.00
Mulilo Rnewable Energy Solar PV Prieska 19.90
Herbert PV Power Plant 19.90
SoutPan Solar Park 28.00
Witkop Solar Park 30.00
Touwsriver Project 36.00
De Aar Solar PV 48.30
South African Mainstream Renewable
Power Droogfontein
48.30
Letsatsi Power Company 64.00
Lesedi Power Company 64.00
Kalkbult 72.50
Solar Capital De Aar (Pty) Ltd 75.00
Kathu Solar Energy Facility 75.00
TOTAL 631.80
TOTAL MW’s ALLOCATED in BD1 1415.90
CSP = 1 deal MW
Bokpoort CSP Project 50.00
TOTAL 50.00
Wind = 7 deals MW
Amakhala Emoyeni 133.70
Gouda Wind Project 135.50
Tsitsikamma Community Wind Farm 94.80
West Coast 1 90.82
Grassridge 59.80
Waainek 23.28
Chaba 21.00
TOTAL 558.90
PV = 9 deals MW
Jasper Power Company 75.00
Solar De Aar 3 Proprietary Limited 75.00
Sishen Solar Facility 74.00
Dreunberg 69.60
Boshoff Solar Park 60.00
Linde 36.80
Aurora-Rietvlei Solar Power 9.00
Upington Solar PV plant 8.90
Vredendal Solar Park 8.82
TOTAL 417.12
Small Hydro = 2 deals MW
Stortemelk Hydro (Pty) Ltd 4.40
Neusberg Hydro Electric Project 10.00
TOTAL 14.40
TOTAL MW’s ALLOCATED in BD2 1040.42
CSP = 2 deals MW
Xina CSP South Africa 100.00
Karoshoek Consortium 100.00
TOTAL 200.00
Wind = 7 deals MW
Red Cap- Gibson Bay 110.00
Nojoli Wind Farm 87.00
Longyuan Mulilo De Aar 2 North Wind
Energy Facility
139.00
Longyuan Mulilo De Aar Maanhaarberg
Wind Energy Facility
96.00
Khobab Wind Farm 138.00
Noupoort Mainstream Wind 79.00
Loeriesfontein 2 Wind Farm 138.00
TOTAL 787.00
PV = 6 deals MW
Adams Solar PV 2 75.00
Tom Burke Solar Park 60.00
Electra Capital 75.00
Pulida Solar Park 75.00
Muililo Sonnedix Prieska PV 75.00
Mulilo Prieska PV 75.00
TOTAL 435.00
Landfill Gas = 1 deal MW
Johannesburg Landfill Gas to Electricity 18.00
Biomass = 1 deal MW
Mkuze 16.00
TOTAL MW’s ALLOCATED in BD3 1456.00
On-shore Wind = 5 deals MW
Roggeveld Wind Farm 140.00
The Karusa Wind Farm 140.00
The Nxuba Wind Farm 139.00
Golden Valley Wind 117.00
Oyster Bay Wind Farm 140.00
TOTAL 676.00
Solar PV = 6 deals MW
Sirius Solar PV Project One 75.00
Drrogfontein 2 Solar 75.00
Dyason’s Klip 1 75.00
Dyason’s Klip 2 75.00
Konkoonsies II Solar Facility 75.00
Aggeneys Solar Project 40.00
TOTAL 415.00
Hydro= 1 deal MW
Krusivallei Hydro 5
TOTAL 5.00
Biomass = 1 deal MW
Ngodwana Energy Project 25.00
TOTAL 25.00
TOTAL MW’s ALLOCATED in BD4 1121.00
Indicates Barclays deals
Indicates Barclays BEE Funding
11

16. REIPPP Overview (Cont)
List of successful bidders in the REIPPP program
Round 4.5 Winners
Onshore Wind = 7 deals MW
Soetwater Wind Farm 139
Kangnas 137
Perdekraal East 108
Excelsior Wind Energy Facility 32
Wesley-Ciskei 33
Copperton Windfarm 102
Garob Wind Farm 136
TOTAL 687
Solar PV = 6 deals MW
Solar Capital Orange 75
De Wildt 50
Bokamoso 68
Zeerust 75
Greefspan PV Power Plant No 2 Solar Park 55
Waterloo Solar Park 75
TOTAL 398
TOTAL MW’s ALLOCATED in 4.5 1,085.00
Indicates projects that Barclays participated in
12

17. 17
Contact Details
Barclays Africa – Contact Details
Bhavtik C. Vallabhjee
Barclays Africa – Corporate & Investment Banking
Director – Power, Utilities & Infrastructure
T: +27 11 772 7422
M: +27 76 258 3301
E: Bhavtik.Vallabhjee@Barclays.com
Physical Address: 15 Alice Lane, Sandton, South Africa