South Africa: second bid window for battery storage – ESI-Africa.com

South Africa: second bid window for battery storage - ESI-Africa.com

The Department of Mineral Resources and Energy (DMRE) invites bids under the Second Bid Window of the Battery Energy Storage Independent Power Producers Procurement Programme for 615MW (2,460MWh) battery energy storage capacity and ancillary services in line with the power system requirements as set out by the System Operator.

The procurement round calls for eight storage facilities that are within the closest proximity of the following dedicated transmission substations in the Northwest Supply Area as selected by Eskom: Mercury, Carnel, Hermes, Ngwedi, Midas, Marang, Ararat and Bighorn substations. Maximum capacity at each substation – 77MW.

Bid submission deadline: 30 April 2024

Check the ESIPPPP website for details on the Qualification and Evaluation process as well as further details about the 10 points scoring under the regulations of the PPPFA allocated to specific goals to promote Economic Development.

The procurer, in respect of this procurement programme, will be the Department of Mineral Resources and Energy (DMRE) and the electricity must be purchased by Eskom Holdings SOC Limited designated as the buyer.

The ESIPPPP will provide for long term power purchase agreements up to 15 years.

The following criteria applies to the second bid window of the battery energy storage IPPPP:

  • Battery Storage Technology for a minimum duration of 4 (four) hours at the Contracted Capacity;
  • The project contracted generation capacity size range from a minimum of 77MW to a maximum 153MW for four hours;
  • IPP to declare availability and the System Operator will determine the Charging, Discharge or Steady State operating modes;
  • Min Round Trip Efficiency (RTE) of 70% to be tested yearly;
  • Measurement and management of the max number of cycles per contract year. Max 730 Equivalent number of cycles/annum;
  • Net Dependable Capacity (NDC) testing regime will be done on yearly basis and on request by system operator;
  • Minimum Availability of 95% over 8,760 hours per contract year, to be confirmed. Requirement as it will be dealt with via the penalty regime for non-availability;
  • As part of evaluation, RTE, Rapid Voltage Change (RVC) impact and availability will be factored into evaluation price calculation; and
  • The Facility would be expected to provide Instantaneous Reserves, Regulating Reserves, Ten Reserves and Supplemental Reserves.

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Bid submission timing

The Bid announcement was made on 14 December 2023. Preferred Bidder announcement is targeted approximately 3 (three) months post the Bid Submission Date (30 April 2024) and Financial Close will be approximately 6 (six) months post Preferred Bidder announcement.

The Department will convene a Bidders’ Conference in respect of this bid window, to be hosted on an e-platform on 18 January 2024, to provide more information on the qualifying criteria and bid submission expectations. Further information will be communicated on the DMRE and IPP Projects websites.

Registration details

Prior to accessing the Request for Proposals (RFP), each prospective Bidder shall be required to register on the Energy Storage IPP procurement Programme website (and pay a non-refundable fee of R25,000 (Twenty Five Thousand Rand), to have access to the RFP.

To register each prospective Bidder is requested to complete the registration form under the “Sign In” tab and to follow the instructions to complete the registration. Once registered, the prospective Bidder is requested to log onto the website and upload their proof of payment under the “Payments” tab.

The payment of the non-refundable fee of R25,000 (Twenty Five Thousand Rand) entitles each prospective Bidder to have access to the RFP and to submit one project at the bid Submission Date.

If the prospective Bidder intends to submit more than one project they will need to make an additional payment of R25,000 (Twenty Five Thousand Rand) per additional project and to upload the proof of payment under the “Payments” tab.

Once the Bid Submission Notification window is opened the prospective Bidder will be required to provide the details of the project(s). The Department shall communicate only with Bidders that have completed the electronic registration form and have paid the required fee.

Banking details

The required fee is payable by means of direct deposit or electronic funds transfer, which fee must be made without set-off or deduction. All payments must be made in immediately cleared funds to the Project Development Fund established by National Treasury for Energy Storage IPP Procurement Programme:

Bank: Nedbank
Account Name: GTAC – IPP
Type of Account: Current
Account Number: 1068872608
Branch Name: Corporate Client Services, Johannesburg
Branch Code: 198765

SWIFT Code: NEDSZAJJ

The Bidder’s company name should be used as the payment reference in the electronic registration form. Enquiries should be directed to the Project Officer via the email at [email protected]

Source: https://www.esi-africa.com/tenders/south-africa-second-bid-window-for-battery-storage/

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