10 November 2011 by Cliffe Dekker Hofmeyr

IPP Procurement Programme- first deadline has passed

The first bid submissions for the South African Department of Energy's independent power producer (IPP) procurement programme for renewable energy were due last Friday, 4 November.

According to Brent Williams, CEO of Cliffe Dekker Hofmeyr business law firm, the IPP's bid to supply 3,725 MW from renewable sources in order to ensure the continued uninterrupted supply of electricity in South Africa is a major challenge for our country, with potentially dire economic implications should we fail to achieve sustainable supply.

"To put the nature of this programme into perspective, 3,725 MW constitutes roughly 10% of the country's current installed energy production capacity (from mostly brown sources). It is cutting edge in that it is the first major renewable energy initiative of this magnitude in our country," Williams said.

Kieran Whyte, Director and National Head of the Projects and Infrastructure practice, said, "As responsible global citizens, it has become a necessity to diversify our electricity supply portfolio by moving towards renewable energy sources (namely - hydro, solar, wind, biomass and gas) and thereby contribute towards socio-economic growth opportunities."

Cliffe Dekker Hofmeyr's Projects and Infrastructure practice group advised on 17 projects, both for developers and lenders, that were submitted on the First Bid Submission Date (4 November 2011).

According to Whyte, "The firm is also mandated to advise a number of additional developers and lenders under the Second Bid Submission Date - with a deadline of 5 March 2012.

"The Preferred Bidders under the First Bid Submission Date should be announced on 25 November 2011," he added.

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