Goverment gives Eskom permission to source 12,000MW of power from IPPs

Lupus

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Do we have IPPs that generate that much? If so where?
NVM it's of course restricted again and more red-tape so it's not a fix it's just more hogwash
"“Electricity from the new generation capacity shall be procured through one or more tendering procedures…and shall target connection to the grid as soon as reasonably possible within the given timeline,” the department said"
 

Messugga

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Do we have IPPs that generate that much? If so where?
NVM it's of course restricted again and more red-tape so it's not a fix it's just more hogwash
"“Electricity from the new generation capacity shall be procured through one or more tendering procedures…and shall target connection to the grid as soon as reasonably possible within the given timeline,” the department said"

You can get solar power plants in the region of 100MW up and running well wtihin the space of a year.
 

Lupus

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You can get solar power plants in the region of 100MW up and running well wtihin the space of a year.
if there was no red tape, but guess what they've added plenty of. Tenders, tenders, tenders
 

itareanlnotani

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You can get solar power plants in the region of 100MW up and running well wtihin the space of a year.

Within the space of 3 months actually (after breaking ground).
Likely a year including the paperwork application and financing though.
 

itareanlnotani

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At least the breakdown seems reasonable -
Not sure why more coal though.
  • 6,800 megawatts from renewable (wind and solar) sources;
  • 3,000 megawatts from gas sources;
  • 1,500 megawatts from coal sources; and
  • 513 megawatts from storage.
 

The Darkness

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I'm keen to see how this becomes another corrupt, tender ridden mess. Watch this space....
 
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I would prefer it not to be tenders and tenders, that's the unnecessary red tape and more costs.

A tender is not inherently a bad thing, it's just bidding to supply a company. When used properly it actually increases transparency and decreases cost.

Problem in sa is that they are not awarded honestly. The corrupt people deciding are the problem, not the tender process.
 

RVQ

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A tender is not inherently a bad thing, it's just bidding to supply a company. When used properly it actually increases transparency and decreases cost.

Problem in sa is that they are not awarded honestly. The corrupt people deciding are the problem, not the tender process.

From my experience its the BEE requirement that paves the way for corruption, if promotes the concept of front companies, whereby a connected ANC individual sets up a shell company with family and friends, gets the Tender, takes a large chuck off the top and using the little remaining cash to outsource the actual work. The outsource partner has much less cash to work with while still having to deliver then proceeds with cutting costs resulting in shoddy work. In the worse case scenarios, Tenders are created for 'ghost work' whereby nothing is delivered but the money pocketed.

Change the BEE requirement from ownership to training, employment and community upliftment and it will change the game but it cannot happen as the ANC won't be able to steal tax money then
 

zoozi

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"Electricity from the new generation capacity shall be procured through one or more tendering procedures"
ALL ABOARD, CHOO CHOO!
 

John Tempus

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At least the breakdown seems reasonable -
Not sure why more coal though.
  • 6,800 megawatts from renewable (wind and solar) sources;
  • 3,000 megawatts from gas sources;
  • 1,500 megawatts from coal sources; and
  • 513 megawatts from storage.

More coal because you need to be able to sell rocks as coal to someone for profit.

I expect a huge tender disaster with this IPP program, over run expenditure and eventual terrible cost per kwh once this is all up and running.
 

John Tempus

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A tender is not inherently a bad thing, it's just bidding to supply a company. When used properly it actually increases transparency and decreases cost.

Problem in sa is that they are not awarded honestly. The corrupt people deciding are the problem, not the tender process.

They are using a transparent model that should give you the best outcome for the least amount of money and flip it upside down where they tend to magically select the most expensive tender with the most expensive outcome.

Only in SA can we consistently screw up a bidding system that is meant to eliminate the exact problem they keep creating with it.
 

Messugga

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More coal because you need to be able to sell rocks as coal to someone for profit.

I expect a huge tender disaster with this IPP program, over run expenditure and eventual terrible cost per kwh once this is all up and running.

You pay an IPP per kWh. How they make that figure profitable is down to the IPP in question. That's sort of the point of the "I" in "IPP".
 
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