The programme forms part of Eskom’s strategy to diversify generation technologies, support South Africa’s energy transition and expand access to cleaner sources of electricity for customers.
The utility has launched a Request for Qualification (RFQ) process to identify and qualify experienced strategic renewable energy partners for the Phase 1 Programme of up to 6GW of utility-scale renewable energy and energy storage projects. The RFQ is the first stage of the procurement process and will establish a panel of pre-qualified strategic partners who may be invited to participate in future project-specific procurement opportunities.
The Eskom Phase 1 Programme is an initial portfolio of up to 6GW of utility-scale renewable energy projects, spanning solar photovoltaic (PV), battery energy storage systems (BESS), wind and other renewable technologies. Eskom will contribute projects comprising at least 2GW of solar PV and 1GW / 4GWh of BESS, which may be complemented by projects owned or originated by the selected strategic partners. The strategic partners will form a panel of pre-qualified co-development and co-investment partners for development, financing and implementation for a period of five years.
The programme is intended to leverage private-sector capital, expertise and project-development capability, with project structures and funding arrangements to be determined on a project-by-project basis.
This RFQ relates to the pre-qualification of respondents who will ultimately be permitted, subject to the terms of the RFQ, for an opportunity to bid, subject to the contents of a future Request For Purchase (RFP), or RFPs, for an opportunity or opportunities to partner with Eskom Green as a Strategic Partner capable and willing to deliver part of or the entirety of Eskom Green’s Phase 1 programme.
The RFQ process will select a panel of strategic partners to support Eskom-owned renewable energy and storage projects, including projects on Eskom-owned land and generation sites, and/or opportunities where Eskom partners with projects owned or originated by strategic partners, subject to project-specific evaluation and governance approvals.
As part of the RFQ process, the strategic partner must demonstrate the technical capability, development track record and financial capacity required to co-develop, finance, construct, operate and maintain a portfolio of utility-scale renewable energy projects in partnership with Eskom Holdings, or Eskom Green, pursuant to its incorporation.
Eskom Green offers prospective partners a compelling platform, including a substantial pipeline of solar PV, wind and BESS projects, with sites and land rights at varying stages of maturity. Eskom Green further provides access to decades of power-generation skills and expertise, the ability to facilitate efficient routes to market and offtake structuring; and a national mandate and a long-term, large-scale development opportunity.
Each project contributed by Eskom under the Phase 1 Programme has an allocated site, with associated land, environmental authorisations and grid connection access in progress and is anticipated to be housed in a ring-fenced Special Purpose Vehicle (SPV), financed predominantly on a limited- or non-recourse project-finance basis and similarly to those projects that are expected from the strategic partner.
Notes to editors:
At the date of issue of the RFQ, Eskom Green is in the process of being incorporated with the Companies and Intellectual Property Commission (“CIPC“) under the Companies Act, 71 of 2008. Once it is incorporated, Eskom Holdings will hold 100% of the issued share capital of Eskom Green. Until Eskom Green is incorporated, Eskom Holdings will administer and manage this RFQ and any later stage of the procurement process on Eskom Green’s behalf. From incorporation, Eskom Green may assume the administration of the process in whole or in part, and Eskom Holdings will notify respondents in writing when it does so.
About Eskom and Electricity – Public Awareness Campaigns: Conducts campaigns to educate the public on energy conservation.
Purity
Africa is on the rise -Looking for growth opportunities? – Search no further. The African continent is on the cusp of transformative growth, with blossoming entrepreneurship and plenty of opportunities for smart and simple business solutions. Africa is a 1.2bn-person market, a number expected to double over the next 30 years. The continent has been gradually transformed in the past 20 years, and if you haven’t noticed you are not alone. Generally, business leaders tends to overestimate the challenges of doing business in Africa and underestimate the size and potential on the African continent. Thereby not stating that the African markets are easy to do business in, but emphasising that they are worth the effort, and companies not engaged in African markets risk losing out on one of the 21st century’s great growth opportunities.