Renewable energy bidders to be announced during COP 17

According to the Integrated Resource Plan (IRP2010) - which is a 20-year projection on electricity supply and demand - about 42% of electricity generated in South Africa is required to come from renewable resources.

The department has put out a bidding process, where it will look for proposals on new generation. South Africa wants to procure 3 725 MW of renewable energy through this process. Over 270 potential bidders had paid the R15 000 fee necessary to receive bid documentation.

"We are overwhelmed by the response from the market," Magubane said, adding that the department believes the programme is bankable, judging by the response received.

Potential bidders for the supply of renewable power, such as onshore, concentrated solar power, biomass and small hydro have, until 4 November to submit their bids for consideration.

There are five window phases when potential bidders can submit their bids to provide power, with the first deadline in November and the next one in March 2012.

However, the department called on potential bidders not to submit their paperwork if they were not ready. National Treasury's Karen Breytenbach emphasised that incomplete submissions would be disqualified.

Among the requirements expected of bidders is that they submit environmental authorisation as well as shareholder agreements. Potential bidders are also expected to show achievement of economic development threshold. If potential bidders are found to have taken part in anti-competitive conduct, they may be disqualified.

Power parastatal Eskom would be the designated buyer and would provide connection to the power grid but would exclude municipal connection.

"We have received 321 applications for grid connection mainly for wind and PV," Eskom's head of delivery, Kannan Lakmeeharam, said.

Eskom has been excluded from bidding.

In selecting bidders, government would look at value for money and the strength of the bidder, among other things, while their net assets would also be considered.

The selection process of bidders would be in two stages, starting off with a team evaluating the bid. After evaluation, there would be a process of auditing (by Price Water Cooper).

Magubane said she was confident there would be no delays in announcing the bidders, following the closing date. COP 17 will get underway on 28 November. She added that there was interest in the programme from abroad in companies from Spain, among others.

Documentation relating to small projects (of between one to five megawatts) would be made available before 4 November.