South Africa: Coal baseload IPP bid submission

The submission of responses to the request for proposals for the first window of the coal baseload independent power producer (IPP) procurement programme went ahead on 2 November. The deadline had been delayed following requests from bidders, many of whom were struggling to restructure their projects after the Department of Energy made the surprise announcement that at least 51% of the projects must be locally owned and 30% of total equity owned by black South Africans. There were also problems procuring coal for the full 25-year term of the power purchase agreement at prices that would make the project competitive.