The Department of Minerals and Energy (DME) said on Monday it had embarked on a process to introduce new power generation capacity to meet the country’s growing demand for electricity.
According to the national integrated resource plan recently published by the national electricity regulator, there is a need for over 2Â 500 megawatts (MW) of new peaking capacity between 2006 and 2010.
Eskom will be responsible for addressing the supply requirement up to the end of 2008, while the DME will ensure that an additional 1Â 000MW of peaking power, in the form of open cycle gas turbines will be introduced by the end of 2008.
The department said it is expected that the additional 1Â 000MW will comprise one or two power plants and will be offered by the DME through a competitive tender process.
“The DME is in the final phase of a feasibility study, carried out in accordance with public-private-partnership guidelines, to be submitted to the National Treasury for formal approval to proceed with the procurement phase of the tender.
“It is envisaged that the tendering process will be launched by the DME in 2005. The procurement documentation would invite independent power producers first to pre-qualify and then to bid for exclusive rights to build, own and operate the new plants, which would be expected to be fully operational by the end of 2008.”
As part of its preparations for the tender process, the DME will be inviting interested parties to register electronically an “expression of interest” in the projects.
Registration will enable a two-way exchange of preliminary information, prior to the commencement of the formal tendering process. The invitation will be aimed at IPP investors including international, local and black economic empowerment investors, lenders, turnkey contractors, fuel suppliers, insurers and operators. – I-Net Bridge