Renewable Energy Independent Power
Producer Procurement ProgrammePerspective Overview (REIPPP)
11/2011
2
Table of Contents
1. REIPPPP
1.
2.
3.
4.
5.
6.
Defined
Participants
Processes
Benefits
Challenges
Phase 4
2. Hatch
1.
2.
3.
4.
Hatch Introduced
Involvement in REIPPPP in South Africa
Key learnings
Reference projects
11/2011
3
Solar and Wind
Energy make
sense
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REIPPPP Defined
The REIPPP consists of a structured process managed by
the Department of Energy to allow private developers and
investors to build and operate renewable energy generation
facilities
•
•
•
Wind
Solar
Mini Hydro
•
Biomass
The energy generated by these facilities is sold to Eskom
on a long term Power Purchase Agreement (PPA) basis
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Renewables Defined
Renewable
Technology
Basic Description and Attributes
Wind
• Use of wind turbines
• Each turbine typically between 1,5
– 3MW
• Located in coastal and high altitude
sites
Mini Hydro
• Small Hydro electric plant
• Utilising smaller streams of water
• Ideal for remote area power
supplies
• Typically 100kW per unit
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Renewables Defined
Renewable
Technology
Basic Description and Attributes
Solar
• Utilises radiant and heat energy
from the sun
• Two mature technologies
• Photovoltaics (Solar PV)
• Concentrated Solar power (CSP)
Biomass
• Use of natural substances such as
wood and domestic waste
• Can be converted to Biofuel such
as bio diesel, ethanol and methane
gas
• Biomass or Biofuel can be burned
to to produce heat or power
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REIPPPP Defined
South Africa and the region has significant potential for
renewable energy to address the current supply/demand
challenges.
The REIPPPP programme was initiated to:
•
•
•
•
•
Provide a mechanism address the current capacity shortages
Enable the development of renewable energy generation in South Africa
Through the involvement of the private sector, create a competitive
market for power generation.
Contribute to the economy by creating job opportunities, and reducing
power constraints
Develop and retain engineering and related skills in South Africa.
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REIPPPP Key Participants
Participant
Key Role
Department of Energy (IPP
office)
Programme manager and
allocates tasks
Eskom
Provider of grid connections
and purchaser of energy
Financial
institutions/investors
Provider / facilitator of project
funding
Developer
Develop project
Constructor/EPC contractor-
Construction of facility
Operator
Operate and maintain the
generation facility
Consultants
Technical,
Legal and
Financial
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REIPPPP Processes (1 of 2)
DOE issues
RFQ for
completive bids
for specified
capacity
amount
Developers
compile and
submit bids
Eskom provides
technical details
and cost for
connection
Financial
institutions/investors
provide guarantees
DOE evaluates
bids based on
technical merit,
socio economic
development
and tariff
offered
Advanced
Feasibility
Study, (12
months)
Unsuccessful,
wait for next
round of RFQs
Successful, bidder receives
preferred bidder
appointment and timeline to
submit final documents for
PPA signature
Engineering,
Legal and
Financial
advice
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REIPPPP Processes (2 of 2)
Developers undertake detailed
studies to ensure “financial
closure” is obtained by due
date.
Eskom provides
more technical
details and cost
for connection
Financial
institutions/investors
raise funding
• FEED engineering
• Procurement
• Legal advice for
PPA and other
contracts
• Financial and
commercial advice
for contracts
• Statutory and other
permits
Sign Power
Purchase
Agreement with
Eskom within
required
financial close
timeframe
Construct
generation
facility and grid
connection
Achieve
commercial
operation date
for
commencement
of generation
Engineering consultants
for:
•Engineering design
inputs for facility balance
of plant Eskom grid
connection works
•Construction monitoring
•Commissioning support
•Grid code compliance
studies
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REIPPP benefits
•
•
•
•
•
Structured process – continually maturing
Additional generation has been connected to the power grid to
alleviate shortfall/challenges of supply and demand.
Prices per kWh are competitive South Africa is exploiting the
renewable energy resources (wind , solar etc.)
This programme is contributing to employment across the country.
Developer may construct the grid connection as well as the generation
capacity
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REIPPP Benefits - Selected Extracts from the Bid
Window 4 Announcement
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REIPPP Challenges
•
•
•
•
•
•
Significant preparation time required
Access to a suitable connection to the power grid due to location,
availability and capacity of connection points.
Limited capability of existing power grid backbone to evacuate
power
Environmental constraints and approval processes
The ability to ensure the bid is competitive thereby a trade off
between the size of the plant and the proposed tariff offered.
The experience level of the engineering and construction industry in
establishing the generation facility and grid infrastructure.
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Table of Contents
1. REIPPPP
1.
2.
3.
4.
5.
6.
Defined
Participants
Processes
Benefits
Challenges
Phase 4
2. Hatch
1.
2.
3.
4.
Hatch Introduced
Involvement in REIPPPP in South Africa
Key learnings
Reference projects
11/2011
15
Introducing Hatch
CANADA
Calgary, Alberta
Fredericton, New Brunswick
Halifax, Nova Scotia
Hamilton, Ontario
Mississauga, Ontario
Montréal, Québec
Niagara Falls, Ontario
Saint John, New Brunswick
Saskatoon, Saskatchewan
St. John’s, Newfoundland & Labrador
Sorel-Tracy, Québec
Sudbury, Ontario
Terrace, British Columbia
Toronto, Ontario
Trail, British Columbia
Vancouver, British Columbia
Winnipeg, Manitoba
EUROPE
London, England
Moscow, Russia
St. Petersburg, Russia
ICELAND
Reyðarfjörður
CHINA
Beijing
Shenyang
Shanghai
INDIA
USA
Aliquippa, Pennsylvania
Amherst, New York
Anchorage, Alaska
Fort Collins, Colorado
Houston, Texas
Lakewood, Colorado
New Delhi
New York, New York
Pittsburgh, Pennsylvania
Salt Lake City, Utah
Scottsdale, Arizona
Seattle, Washington
Tampa, Florida
MIDDLE EAST
Abu Dhabi, UAE
Al Khobar, Saudi Arabia
Sohar, Oman
SOUTH
AMERICA
Antofagasta, Chile
Belo Horizonte, Brazil
Lima, Peru
Rio de Janeiro, Brazil
Santiago, Chile
São Paulo, Brazil
INDONESIA
Jakarta
SOUTH AFRICA
Cape Town
Durban
East London
Port Elizabeth
Pretoria (Menlyn)
Secunda
Woodmead
Entity
Mozambique
NEW
CALEDONIA
Nouméa
AUSTRALIA
Brisbane
Gladstone
Mackay
Newcastle
Perth
Sydney
Townsville
Wollongong
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Our Professional Services
Project Delivery
Engineering
Project management
Procurement
Construction management
Consulting
Management consulting
Technology solutions
Environmental services
Systems & Process Control
Operational Services
In-plant engineering services for operations
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Hatch Goba involvement in REIPPPP in
South Africa
•
Planning
–
–
–
–
–
–
Grid master planning
Grid connection feasibility studies
Solar and wind resource feasibility studies and advice.
Front End Engineering Design (FEED) and detail design
of wind generation facilities
Conceptual and detail design of grid connection works
and Eskom approvals
Grid code compliance studies and representation at grid
code committees on behalf of developers
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Detailed Planning – key to success
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Hatch Goba involvement in REIPPPP in
South Africa
•
Project Delivery
–
–
–
–
–
–
RETEC testing
Construction technical support
Owners engineering appointments.
Technical investigations such as lightning protection of solar facilities,
failure investigations and factory acceptance tests
Commissioning support
Final handover
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Power Delivery and Integration Projects
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Key Learnings
• Integrating a renewable power plant into a transmission /
distribution network requires good engineering and
conformance to the local grid connection codes.
• Do not assume it is possible to connect to the power grid just
because there is a power line or substation near the location
identified for the proposed wind or solar facility.
• Ensure the technical team identified for the project is
sufficiently skilled to design the grid connection works and
balance of plant works, cheapest is not always the best.
• Allow sufficient time to develop and optimise the project in
terms of:
– Location
– Technology selection
– Detailed planning
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Oyster Bay Wind Farm (142MW)
11/2011