Eskom launching enough solar and batteries to cover 6 stages of load shedding in South Africa
Power utility Eskom has launched a Request for Qualification (RFQ) process to build renewable energy projects totalling 6 GW—equivalent to 6 stages of load shedding.
The RFQ process is to identify and qualify renewable energy groups for the Phase 1 Programme for utility-scale renewable energy and energy storage projects.
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, it said.
“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,” Eskom said.
The Phase 1 Programme is an initial portfolio of up to 6 GW of utility-scale renewable energy projects, spanning solar photovoltaic (PV), battery energy storage systems (BESS), wind, and other renewable technologies.
Eskom said it will contribute projects comprising at least 2 GW of solar PV and 1 GW/4 GWh of BESS, which may be complemented by projects owned or originated by the selected partners.
The strategic partners will form a panel of prequalified co-development and co-investment partners for development, financing and implementation for a period of five years.
Project structures and funding arrangements to be determined on a project-by-project basis, the utility said.
Notably, Eskom said the programme is intended to leverage private-sector capital, expertise and project development capabilities.
Eskom is running the RFQ for ‘Eskom Green’, a new entity that is currently being incorporated. Once it is incorporated, Eskom Holdings will hold 100% of the issued share capital of Eskom Green.
This is Eskom’s new utility-scale renewable energy business that aims to increase the supply of renewable energy in the country
What businesses can expect
Eskom said the RFQ relates to the pre-qualification of respondents who will ultimately be permitted to bid on future Request For Purchase (RFP).
This is conditional on the RFQ’s terms and other specifics, but it gives qualified businesses the opportunity to partner with Eskom Green on the first phase of the programme.
The RFQ process will select a panel of partners to support Eskom-owned renewable energy and storage projects.
This includes projects on Eskom-owned land and generation sites, and/or opportunities where Eskom partners with projects owned or originated by strategic partners.
As part of the RFQ process, the business must demonstrate:
- Technical capability
- Development track record
- Financial capacity
- Ability to co-develop, finance, construct, operate, and maintain a portfolio of utility-scale renewable energy projects.
“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 said.
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, it added.
The projects are also anticipated to be housed in a ring-fenced Special Purpose Vehicle (SPV), financed predominantly on a limited- or non-recourse project-finance basis.
Projects that are expected from the strategic partner are expected to have similar conditions.
The projects will be administered under Eskom Holdings until such time as Eskom Green is incorporated.
Eskom said that Eskom Holdings will administer and manage the 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,” it said.
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