Eskom reiterates support for BW5 of the REIPPPP

13th May 2022 By: Tasneem Bulbulia - Creamer Media Reporter

Eskom reiterates support for BW5 of the REIPPPP

Photo by: Bloomberg

State-owned power utility Eskom has acknowledged and welcomed the Department of Mineral Resources and Energy’s (DMRE’s) extension of the commercial close timelines for the 25 preferred bidders announced under the Renewable Independent Power Producer Procurement Programme (REIPPPP) Bid Window 5 (BW5), with all projects expected to sign project agreements by no later than the end of September.

Eskom’s Grid Access Unit (GAU) has also reiterated its support for the REIPPPP and has also made some clarifications regarding the REIPPPP BW5, as well as the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) and the non-DMRE electricity generation projects.

These clarifications include that, as selected by customers and independent power producers (IPPs), these are all self-build projects.

Moreover, Eskom says that, in the self-build project process, the IPPs are responsible for among others, paying the quotation fees without delay (when requesting the budget quote (BQ), and by accepting all the cost estimate letter (CEL) conditions; presenting designs to Eskom for review and implementing the recommendations, as part of the BQ development process; the duration of meeting all the BQ conditions, when accepting the BQ; the environmental-impact assessment (EIA), procurement and construction work, depending on the specific technical scope of each project; and 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 utility emphasises.

It says the commercial close date is, therefore, specifically dependent on the IPPs paying quotation fees and accepting their CELs, immediately after announcement of the preferred bidder; submitting designs on time; reviewing designs with Eskom in time, dependent on and on agreed upon self-build activities; and fulfilling other requirements to enable BQ development and conclusion.

Eskom has also reiterated 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.