1

ADDITIONAL POINTS TO ADDRESS

PROGRAMME 6 : PROGRAMMES
AND PROJECTS
Dr W Barnard
Deputy Director General
29 October 2013
PROGRAMMES AND PROJECTS
2
A. ENERGY ADJUSTED BUDGET SUMMARY, VOTE 29
5. There was also a roll-over of R 28 million. Why was there a problem here
with non-grid electrification?
1. The non-grid programme is a negotiation process -wall-to-wall grid licences to either
municipalities or Eskom. Neither were interested in non-grid programme until recently,
since it was seen as a pilot. The negotiations between the communities, Municipalities,
Eskom and the private implementers are a very complex and time consuming process.
Since one year contacts have been issued to the concessionaires the last two years,
the areas been identified to implement non-grid are only secured 4-6 months into the
financial year, which leaves a very short period to do the physical implementation.
2. Long procurement process in the re-appointing of non-grid service providers.
3. Critical shortage of INEP staff working on non-grid programme.
Examples:
In 2011/12 for 2012/13 period INEP was requested to roll-out non-grid in Nqutu municipality.
These areas were agreed upon by all stakeholders for non-grid electricity i.e Eskom,
Municipality and Municipality.
At the time when implementation was supposed to have happened, the service provider was
stopped by Eskom from installing the Solar Home System, since they had changed their grid
roll-out plan.






PROGRAMMES AND PROJECTS (cont.)
3
5. There was also a roll-over of R 28 million. Why was there a problem here
with non-grid electrification? (cont.)
DOE had to find an alternative area to roll-out the non-grid allocations in order to honour our
contractual obligation with the service provider. Okhahlamba Municipality was interested and
the whole negotiation process had to be started all over again.
By the time this process was finalised it was near the end of the financial year 2012/13 and
the service provider was only then able to order material which also had some kind of delay
to be delivered.
The project is continuing well in Okhahlamba and will be completed in January 2014
An additional challenge was that the contracts of the non-grid service providers expired at the
end of November 2012. The process to extend their contract was only concluded in January
2013, making it difficult to organize themselves to complete some of the connections in time.
The New Household Electrification strategy was not been approved at the time the non-grid
contacts expired, hence no clear strategy exist regarding the non-grid programme. As a
result the last two years DOE had to go through a procurement process to procure the non-
grid service providers. This process also added to the time delay before the non-grid projects
could been roll-out, since the BAC needed more information in terms of the contract
extension, as well as legal advise on the long history the Department had with the non-grid
service providers concerned.

PROGRAMMES AND PROJECTS (cont.)
4
A. ENERGY ADJUSTED BUDGET SUMMARY, VOTE 29
7.1. The DoE is also to give reasons for underperformance as declared
in the mid-year performance status. Here focus on
Electrification and energy programme management

Response
The achievements for Q2 of Programme 6 is as follows:
10 quarterly targets been achieved
5 partially achieved and
2 not achieved.
A total of 92 085 connections have already been completed, which is about
21 000 more than has been achieved in Q2 of last year.
Q2 is only the first quarter of the municipal programme.
The first few months is always the slow period and the majority of
connection are completed in the latter part of Q3 and in Q4.
The performance is a vast improvement on the similar quarter last year,
when the Branch was just been established.


PROGRAMMES AND PROJECTS (cont.)
5
B. BRIEFING BY THE DEPARTMENT OF ENERGY ON THEIR
2ND QUARTERLY PERFORMANCE REPORT 2013/14
Update on the progress of the non-grid electrification programme

Response
See response in A 5 above
Current non-grid progress:



Province 1st Q 2nd Q 3rd Q Achieved Planned Remaining
EC 0 708 708 1228 520
KZN 1021 1233 814 3068 9518 6450
Limpopo 0 400 1000 2000 1600
NC 0 210 210
Other 0 0 0 3000 3000
Total 1021 2341 814 4776 15956 11780
PROGRAMMES AND PROJECTS (cont.)
6

B. BRIEFING BY THE DEPARTMENT OF ENERGY ON THEIR
2ND QUARTERLY PERFORMANCE REPORT 2013/14
Under programme 6: Programmes and Projects, the DoE reported
that six out of the nine planned targets were not achieved. How is
this being addressed in the current financial year to ensure there is
no repeat of this situation?

Response
See comments under 7.1 above.
The achievements for Q2 of Programme 6 is as follows:
10 quarterly targets been achieved
5 partially achieved and
2 not achieved.



PROGRAMMES AND PROJECTS (cont.)
7
B. BRIEFING BY THE DEPARTMENT OF ENERGY ON THEIR
2ND QUARTERLY PERFORMANCE REPORT 2013/14 (cont.)
The Branch was established in July 2012. The approved structure at
that stage was not fully funded and therefore didnt had enough staff to
perform all the functions necessary to complete the responsibilities of
the Branch. However, with the new financial year and matching and
placing process been implemented from April 2013 this situation is in
the process of improving.





BRANCH: ENERGY PROGRAMMES
AND PROJECTS
INEP
REGIONAL ENERGY
OFFICES
COMMUNITY UPLIFTMENT
PROGRAMMES AND PROJECTS
ELECTRICITY INFRASTRUCTURE/INDUSTRY
TRANSFORMATION
PROGRAMMES AND
PROJECTS OFFICE
PROGRAMMES AND PROJECTS (cont.)
8
D. UPDATE ON THE CONSTRUCTION OF WINDOWS 1 AS WELL
AS WINDOWS 3 BY THE DOE
BW1 construction is progressing well and most of BW2 developers
are busy with site clearance and development. BW3 has not been
announced, will be done in the next few days. as been



Eastern Cape Free State Limpopo Northern Cape
North-West
Province
Western Cape
Onshore Wind 806.05 72.75 317.59
Solar CSP 200
Solar Photovoltaic 69.6 124 58 658.97725 79.255 58.8
Small Hydro 4.3 10
0
100
200
300
400
500
600
700
800
900
M
e
g
a
w
a
t
t
s

Preferred Bidders in Provinces:
BW 1 and 2
Slide 9
PROGRAMMES AND PROJECTS (cont.)
10
C. BRIEFING ON THE PILOT PROJECT ON ADAM BY THE DOE,
SALGA, FFC AND MISA

Response
Briefing on Mini ADAM programme will be made to this Committee on
1 November.



BW1 Approved Projects (1)
Slide 11
IPP ID PROJECT PROVINCE LOCATION TECHNOLOGY
NET
CAPACITY
IPPID031 Letsatsi Power Company Free State Bloemfontein Solar Photovoltaic 64.0
IPPID032 Lesedi Power Company Northern Cape Postmasburg Solar Photovoltaic 64.0
IPPID035 Witkop Solar Park Limpopo Waterberg Solar Photovoltaic 30.0
IPPID036 Noblesfontein Wind Farm Northern Cape Noblesfontein Onshore Wind 72.8
IPPID037 Touwsrivier Project Western Cape Touwsrivier Solar Photovoltaic 36.0
IPPID043 Dorper Wind Farm Eastern Cape Stormberg Onshore Wind 97.0
IPPID052 Soutpan Solar Park Limpopo Waterberg Solar Photovoltaic 28.0
IPPID064 Mulilo Renewable Energy Solar PV
De Aar
Northern Cape De Aar Solar Photovoltaic 9.7
IPPID065 Mulilo Renewable Energy Solar PV
Prieska
Northern Cape Prieska Solar Photovoltaic 19.9
IPPID118 KaXu Solar One Northern Cape Pofadder Consentrated Solar
Power
100.0
IPPID123 Dassiesklip Wind Energy Facility Western Cape Caledon Onshore Wind 26.2
IPPID128 Konkoonsies Solar Northern Cape Pofadder Solar Photovoltaic 9.7
IPPID138 MetroWind Van Stadens Wind
Farm
Eastern Cape Port Elizabeth Onshore Wind 26.2
BW1 Approved Projects (2)
Slide 12
IPP ID PROJECT PROVINCE LOCATION TECHNOLOGY
NET
CAPACITY
IPPID148 Red Cap Kouga Wind Farm -
Oyster Bay
Eastern Cape Port Elizabeth Onshore Wind 77.6
IPPID155 RustMo1 Solar Farm North West Rustenburg Solar Photovoltaic 6.8
IPPID159 Kalkbult Soutpan Solar Park North West Phillipstown Solar Photovoltaic 72.5
IPPID163 Aries Solar Northern Cape Kenhardt Solar Photovoltaic 9.7
IPPID164 SlimSun Swartland Solar Park Western Cape Swartland Solar Photovoltaic 5.0
IPPID182 De Aar Solar Power Northern Cape Pixley Ka seme Solar Photovoltaic 48.3
IPPID186 Jeffreys Bay Wind Farm Eastern Cape Jeffereys Bay Onshore Wind 133.9
IPPID202 Hopefield Wind Farm Western Cape Hopefield Onshore Wind 65.4
IPPID225 Cookhouse Wind Farm Eastern Cape Cookhouse Onshore Wind 135.0
IPPID443 Greefspan PV Power Plant Northern Cape Douglas Solar Photovoltaic 10.0
IPPID444 Kathu Solar Energy Facility Northern Cape Kathu Solar Photovoltaic 75.0
IPPID564 Solar Capital De Aar (Pty) Ltd Northern Cape De Aar Solar Photovoltaic 75.0
IPPID572 Droogfontein Solar Power Northern Cape Kimberley Solar Photovoltaic 48.3
IPPID696 Herbert PV Power Plant Northern Cape Douglas Solar Photovoltaic 19.9
IPPID798 Khi Solar One Northern Cape Upington Consentrated Solar
Power
50.0
BW2 Approved Projects (1)
Slide 13
IPP ID PROJECT PROVINCE LOCATION TECHNOLOGY
NET
CAPACITY
IPPID002 Bokpoort CSP Project Northern Cape Kheis Consentrated
Solar Power
50.00
IPPID014 Gouda Wind Facility Western Cape Gouda Wind 135.24
IPPID168 Solar Capital Aggenys Northern Cape De Aar Solar Photovoltaic 75.00
IPPID207 Sishen Solar Facility Northern Cape 16km NW of Kathu Solar Photovoltaic 74.00
IPPID240 Amakhala Emoyeni (Phase 1)
Eastern Cape
Eastern Cape 14km SW of Bedfrod Wind 137.90
IPPID303 Tsitsikamma Community Wind
Farm
Eastern Cape Tsitsikamma Wind 94.80
IPPID309 West Coast 1 Western Cape 8km N of Vredenburg Wind 90.82
IPPID362 Waainek Wind Power Project Eastern Cape 6km SW of
Grahamstown
Wind 23.28
IPPID364 Grassridge Wind Power Eastern Cape Coega Wind 59.82
IPPID372 Chaba Wind Power Eastern Cape 6km E of Komga Wind 20.58
IPPID373 Aurora Solar Park Western Cape 2km N of Aurora Solar Photovoltaic 9.00
IPPID375 Vredendal Solar Park Western Cape 2km N of Vredendal Solar Photovoltaic 8.82
BW2 Approved Projects (2)
Slide 14
IPP ID PROJECT PROVINCE LOCATION TECHNOLOGY
NET
CAPACITY
IPPID490 Stortemelk Hydro (Pty) Ltd Free State Clarens Small Hydro 4.31
IPPID523 Linde Northern Cape South-Eastern cnr
Northern Cape
Solar Photovoltaic 36.80
IPPID527 Dreunberg Eastern Cape Northern part of
Eastern Cape
Solar Photovoltaic 69.60
IPPID562 Jasper Power Company Northern Cape Northern Cape Solar Photovoltaic 75.00
IPPID750 Boshoff Solar Park Free State Lejweleputswa District Solar Photovoltaic 60.00
IPPID764 Upington Solar PV Northern Cape Upington Solar Photovoltaic 8.90
IPPID815 Neusberg Hydro Electrical
Project A
Northern Cape Neusberg Small Hydro 9.99
BW1 Progress Sep2013
PLANNED ACTUAL
ACTUAL
>35
031 Letsatsi Power Company FS Bloemfontein Solar Photovoltaic 2012/11/19 2014/05/21 Southdrift R2.4 billion Posts 47840 546 580 373 47840
Structures 1568 1514
Modules 277000 207180
Inverters 64 26
032 Lesedi Power Company NC Postmasburg Solar Photovoltaic 2012/11/19 2014/05/21 Gazzelle R2.4 billion Posts 47840 546 969 668 44758
Structures 1568 1258
Modules 277000 170424
Inverters 64 27
035 Witkop Solar Park L Waterberg Solar Photovoltaic 2013/04/15 2013/04/25 Witkop R 1 394 495 222.00 Site Clearance 750728 80 123 19 7,23,478
Civil Foundation ~14,384 2257
Tracker Blocks 97 0
Modules 11,943 0
LV MV Tranches 7791m 3508
Inverters 25 0
036 Noblesfontein NC Noblesfontein Onshore Wind 2012/12/17 2014/07/11 Biesiesport R 1 574 354 265.00 Road network 1 335.5 282 75 0
Turbine foundation 41 0
Turbine erection 41 0
IPP Substation 1 0
Eskom Substation 1 0
Overhead Line 1 0
Grid Connection 1 0
037 Touwsriver Project WC Touwsriver Solar Photovoltaic 2012/11/19 2014/06/16 Touwsrivier R 412 669 263.00 CPV SYSTEMS: Mech 1500 210 630 441 507
Electrical 0
043 Dorper Wind Farm EC Stormberg Onshore Wind 2013/02/05 2014/07/01 Carrickmore R 2 310 714 286.00 Substations 2 294 337 173 0
Road construction 22km 20km
WT Foundations 40 34
Erection of Towers 40 11
Tower Commission 40 0
052 Soutpan Solar Park L Waterberg Solar Photovoltaic 2013/01/15 2014/01/30 Soutpan R 1 246 228 735.00 Civil Foundation ~13,584 260 375 83 9973
Tracker Blocks 93 11
Modules 1,05,090 6535
Inverters 26 8
064 Mulilo Renewable Energy Solar PV De Aar NC De Aar Solar Photovoltaic 2013/04/15 2014/04/01 De Aar 1 R 239 320 277.00 Polycrystaline 44880 68 262 144
10887290W st ort ed on
sit e
PV inverter 20 12
1250kVA Transformer 10 6
22kV Grid connection 1
Steel & alum structure 20MW 2Mw
065 Mulilo Renewable Energy Solar PV Prieska NC Prieska Solar Photovoltaic 2013/04/15 2014/04/01 Cuprum R 486 071 689.00 Polycrystaline 89760 101 187 122
16.190.660W st ored on
sit e
PV inverter 40 28
1250kVA Transformer 20 14
22kV Grid connection 1
Steel & alum structure 40MW 2Mw
LOCATION PRO
KEY ITEMS
TOTAL
KEY ITEMS SUBSTATION
IPP ID
COMMITTE
D COD
ACTUAL
COMMENC
E DATE
TECHNOLOGY PROJECT NAME
J OB CREATION
ACTUAL KEY
ITEMS INST
TOTAL
P ROJ ECT
BUDGET
BW1 Progress Sep2013
118 KaXu Solar One NC Pofadder Solar CSP 2012/11/16 2015/02/16 Paulputs R 7 812 000.51 Solar field-1200PTC - 1078 754 18%
HTF System 12%
Thermal Energy Storage 15%
Solar Steam Generator 0
Steam Turbine 0
123 Dassiesklip Wind Energy Facility WC Caledon Onshore Wind 2013/01/04 2014/01/14 Klipheuwel- R 439 022 329.00 Road network 1 205 190 117 100%
Hou Hoek Turbine foundation 9 100%
Erection of Turbines 9 8%
IPP Substation 1 80%
Eskom Substation 1 90%
Overhead Line 1 88%
Grid Connection 1 0
Commercial Operation 1
128 Konkoosies Solar NC Pofadder Solar Photovoltaic 2013/04/05 2013/12/13 Paulputs MTS R 227 331 608.00 Solar PV Modules 43008 198 194 133 27876
Mounting System 896 594
Inverters 16 16
Transformers 8 0
138 Metrowind Van Stadens Wind Farm EC Port Elizabeth Onshore Wind 2012/11/15 2014/02/01 Fitches Corner R 500 322 092.00 Towers 9 80 115 48 5
Nancelle 9 5
Blades 27 15
Turbine Transform 9 9
Switchroom 1 1
22kV Powerline t 1 0
148 Red Cap Kouga Wind Farm-Oyster Bay EC Port Elizabeth Onshore Wind 2013/03/21 2014/12/16 Kouga R 1 866 147 859.00 Wind Turbines 32 94 101 33
BoP 344407491 (ZAR)
Eskom 83750005 (ZAR)
Turbine transformers 32
41MVA transformers 2
Met masts 2
155 RustMo1 Solar Farm NW Rustenburg Solar Photovoltaic 2013/02/18 2013/11/15 Spruitfont R 221 134 000.00 BYD 235 7,005kWp 44 90 61 7,005kWp
SMA 630 SC 11 11
Minisubstations 6 6
Structures 621
HV substation 1 93%
Module Racks 621
159 Kalkbult NW Phillipstown Solar Photovoltaic 2012/11/19 2014/01/01 Kalkbult R 2 200 000 000.00 BYD P6-30 312504 450 496 234 312504
Substructrures 13021 13021
Inverters SMA CP800 84 84
SMA TCS 1660VA 42 42
BW1 Progress Sep2013
163 Aries Solar NC Kenhardt Solar Photovoltaic 2013/04/05 2013/12/13 Paulputs MTS R 231 635 203.00 Solar PV Modules 43008 102 94 76 43008
Mounting System 896 896
Inverters 16 16
Transformers 8 8
164 SlimSun Swartland Solar Park WC Swartland Solar Photovoltaic 2013/09/01 2014/07/01 Eenboom R 103 960 000.00 Solar Panels 41850908 0 0 0 0
Structures 14367262 0
Inverters 10561743 0
182 De Aar Solar Power (Proprietary) Ltd RF NC Pixley Ka seme Solar Photovoltaic 2013/01/07 2014/03/03 Chameleon R 1 424 666.90 PV modules 167580 380 420 195 165300
Inverters 76 72
Inv Trfrs 76 48
Cables Approx 40km ~37km
50MVA Trfr 1 1
186 Jeffreys Bay (Proprietary) Limited (RF) EC Jeffreys Bay Onshore Wind 2013/11/13 2014/05/15 Sunnyside R2.9 b Turbine 60 320 ~620 Not recorded 1
Substation 1 69%
Roads ~53km 45km
Crane 60 37
22kV Cabling ~100km 60km
O&M Buidling 1 37%
Wind Monitoring Mast 2 0
202 Hopefield Wind Farm WC Hopefield Onshore Wind 2012/12/07 2014/02/01 Kerschbosch R 1 151 172 949.00 Wind Turbines 37 229.33 433.1 232.81 15
225 Cookhouse Wind Farm EC Cookhouse Onshore Wind 2012/11/19 2014/05/31 Poseidon R 2 259 358 010.00 2.1MW Turbines 66 489 355 196 0
443 Greefspan PV Power Plant NC Douglas Solar Photovoltaic 2013/03/04 2014/04/11 Greefspan R 311 689 569.00 Panels 45954 359 359 234 40250
Trackers 1998 1750
Inverters 300 132
Minisubstations 13 4
Deliv Cabin 1 0
444 Kathu Solar Energy Facility NC Kathu Solar Photovoltaic 2012/11/15 2014/08/15 Kathu R 2 368 752 527.00 Piers 50050 330 720 533 50050
Tracking Beams 42900 29076
PV Modules 343200 181212
Inverters 110 84
Combiner Box 990 324
564 Solar Capital De Aar (Pty) Ltd NC De Aar Solar Photovoltaic 2013/01/15 2013/02/28 Bushbuck R 1 844 015 083.00 Modules 226374 781 1759 963 104290
Structures 71752
572 Droogfontein Solar Power (Proprietary) Ltd (RF) NC Kimberley Solar Photovoltaic 2013/01/07 2014/04/03 Elk R 1 388 840 000.00 PV modules 168720 300 309 217 163346
Sinvert Inverters 76 76
Inverter Trfr 76 8
50MVA Trfr 1 1
696 Herbert PV Power Plant NC Douglas Solar Photovoltaic 2012/12/03 2014/04/11 Herbert R 619 465 453.00 Panels 91908 527 527 356 85238
Trackers 3996 3706
Inverters 600 477
Minisubstations 25 13
Deliv Cabin 1 0
798 Khi Solar One NC Upington Solar CSP 2012/11/30 2014/11/30 R 4 078 000 000.95 Heliostat Solar Field - 722 505 3%
Solar Tower 100%
Solar Receiver 10%
Thermal Energy Storage 50%
Power Block
To be
consctructed
Analysis of RE MW allocation and remaining
MW
Slide 18
Technology
MW allocation in
accordance with
the Determination
MW capacity
allocated in the
First Bid
Submission
Phase
MW capacity
allocated in the
Second Bid
Submission
Phase
MW capacity for
allocation in
future Bid
Submission
Phases
Onshore wind 1 850.0 MW 634.0 MW 562.5 MW 653.5 MW
Solar photovoltaic 1 450.0 MW 631.5 MW 417.1 MW 401.4 MW
Concentrated solar
power
200.0 MW 150.0 MW 50.0 MW 0.0 MW
Small hydro (
10MW)
75.0 MW 0.0 MW 14.3 MW 60.7 MW
Landfill gas 25.0 MW 0.0 MW 0.0 MW 25.0 MW
Biomass 12.5 MW 0.0 MW 0.0 MW 12.5 MW
Biogas 12.5 MW 0.0 MW 0.0 MW 12.5 MW
Total 3 625.0 MW 1 415.5 MW 1 043.9 MW 1 165.6 MW
BW1 Community Issues
Slide 19
There seems to have been inadequate consultation with some local municipalities
regarding the bidding process, bidding criteria and the scope of the IPP projects.
There are challenges in managing expectations of local municipalities and
communities. IPPs have to implement relevant SED/ED programs in the
communities. More awareness/education at municipal/community level is required.
The SED programmes to start during operation phase, not construction phase.
There is a need for an engagement and communication between different
government departments and municipalities to clarify roles. Communications from
national to province to municipal are lacking.
The biggest challenge the project managers are facing is the non-responsiveness
from responsible municipal departments in certain municipalities.
Some IPPs have alleged incidences of destructive and inappropriate interference at
the local government level, which may hinder project completion.
Emergency response infrastructure and resources appear inadequate in most far-
flung municipalities.
There is at times an impasse on hiring of labour between the municipality and the
developers. The labour broker issue, if not handled properly could be problematic.
Labour rates sometimes differ for different disciplines in the same area resulting in
discontent among workers, which could lead to unwanted industrial action.


BW1 Community Recommendations
Slide 20
The IPPs should ensure that they engage municipalities and most specifically the LED
officials.
IPPs should try as far and possible to ensure that SED is sustainable (as opposed to
being a tick box exercise to achieve a target) in the locality of their project and that
expectations are sufficiently managed.
IPPs need to ensure that through their processes they source as much as possible
locally and more specifically in the locale of the project. This should not only be limited
to labour but also services that are necessary for project development and maintenance.
IPPs must ensure that local people are part of skills development and there is a skills
transfer process to enable locals to participate in the process rather than bringing in all
skilled workers from outside South Africa.
Clearer guidelines with respect to local content and local content targets. Should also
consider the introduction of more specific local content targets related to the local
manufacturing of components, particularly associated with solar PV, solar CSP and wind
technologies.
Future bid closure dates should be non-negotiable, as this will provide certainty to
foreign and domestic investors, and continuity of renewable energy investments. The
certainty so provided will also allow supplier industries to adjust their plans accordingly,
as well as facilitate the promotion of localisation and skills development.


Localisation vs. Local Content
Slide 21
It should be noted that Window 1 and 2 reflect fairly low thresholds for local
content based on what the DOE deemed to be achievable during the first
phase of the renewable energy construction programme . Thresholds reflect
the minimum local content achievable, whilst the targets provide the upper
band of what the DOE determined to be achievable.
Local content as stipulated by the dti should not be confused with localisation.
The dti defines local content as The local content of a product,is the tender
price less the value of imported content, expressed as a percentage.
Local content therefore includes services such as consultations and
transportation, and is based on percentage of total spend. In many large
projects the civil works and rest of plant comprise of a significant percentage
of total cost, and thus can be easily used to meet any local content thresholds.
This is evident in the Solar and Wind REIPP projects where local content
thresholds have been largely met by the civil and rest of plant costs. The
impact on local manufacturers of solar and wind components has therefore
been limited.
Localisation however is focused on the development of domestic production
capacity and capabilities in order to assemble/produce parts, components
and/or finished goods. Not with respect to the local area where the
development is taking place.
Local Content Thresholds
Slide 22
Technology
Window 1 Window 2 Window 3
Current
Threshold
Target
Current
Threshold
Target
Current
Threshold
Target
Onshore Wind 25% 45% 25% 60% 40% 65%
Solar PV 35% 50% 35% 60% 45% 65%
Solar CSP without
storage
35% 50% 35% 60% 45% 65%
CSP with Storage 25% 50% 25% 60% 40% 65%
Biomass 25% 45% 25% 60% 40% 65%
Biogas 25% 45% 25% 60% 40% 65%
Landfill gas 25% 45% 25% 60% 40% 65%
Small scale hydro 25% 45% 25% 60% 40% 65%
Slide 23
Environmental Impact Assessment - it is the responsibility of the Bidders
to conduct Environmental Impact Assessment and the approval thereafter.
However, as the department we look at the conditions attached to such
Environmental Approval and the impact of such conditions to the RE project.
There were number of conditions noted, but did not warrant any concern
especially in relation to the preferred bidders. However, it should be noted
that as the department we do not have sight of EIA related to Eskom's
portion of the projects (building or transmission or distribution connection
lines).

Eskom Is involved in the final evaluation process with regards to grid
constrains. No bidders are appointed if there is capacity constrains on the
grid, Eskom is required to give confirmation before the appointment. For
BW1 the Eskom interconnectivity projects are on track. In the majority of
cases the developers are constructing their own sub-stations, but under
Eskoms supervision and standards.

Update on BW 1, BW2 & BW3
What Areas in BW 2& BW3 were improved?
Slide 24
It is not possible to address in detail at this stage the improvements from
BW2 to BW3, but between BW1 and BW2 there already has been
improvements with regards to the following:
The IPPs had to provide their Economic Development (ED) plans as
part of their bid submission in BW1. However, in BW2, we have
allowed the IPPs to submit their ED plans after Financial Close.
These plans also then need to be updated yearly in order to take
into account any changes within the community.
An increase in local content from BW1 to BW2 to BW3
Lessons learnt from site visits for BW1 in dealing with the
community, has helped BW2 approach their communities differently
and with more foresight.
In general for BW3, the prices and the ED offering are much better
compared to BW1 and BW2.


Slide 25
Slide 26
27
Solar park.pdf
Kaxu consentrated solar September 2013_DoE.pdf



Thank you
28
PROGRAMMES AND PROJECTS (cont.)
29
B. BRIEFING BY THE DEPARTMENT OF ENERGY ON THEIR
2ND QUARTERLY PERFORMANCE REPORT 2013/14
Update on the progress of the non-grid electrification programme
Response
See response in A 5 above



Service Provider Budget Expenditure Outstanding Balance
ILITHA R 7 159 668.00 R 5 364 520.00 R 1 795 148.00 R 0.00
KES R 39 340 765.00 R 2 134 182.00 R 5 178 016.80 R 32 028 566.20
NURA R 32 070 500.00 R 12 356 835.40 R 19 713 664.60
SOLAR VISION R 15 160 568.00 R 3 935 964.00 R 1 603 524.00 R 9 621 080.00
OTHER R 25 500 000.00 R 25 500 000.00
TOTAL R 119 231 501.00 R 11 434 666.00 R 20 933 524.20 R 86 863 310.80