women in energy workshop bloemfontein 24th february 2016 · for small scale renewable energy...
TRANSCRIPT
Women in Energy Workshop Bloemfontein 24th February 2016
1
Outline
• REI4P Process and Structure
• Context for the IPPP Programme
• The role of the IPP Office
• Outcomes of the first bid windows
• REIPPP Programme successes
• Available Business Opportunities – REI4P
2
Contractual Arrangement
3
REI4P Process
4
. Competitive bidding process
. 70 % on Price and 30% on Economic Development . Stages in each Bid Window
Context for the IPPP programme
Role of IPP Office
6
IPP Office
The activities of the office are in accordance with: − the capacity allocated to renewable
energy and non-renewable generation in the Integrated Resource Plan (IRP) 2010;
− subsequent ministerial determinations; and
− DoE support service requirements
2 Procurement management services
Professional advisory services
Monitoring, evaluation and contract management services
1
3
Purpose: Delivering on the IPPPP objectives
Services provided:
Role of IPP Office (2) The IPP Office has three interrelated focus areas
The IPPPP activities continue to evolve in order to effectively respond to the planning and development needs in the current energy context.
7
Renewable Energy Procurement
Non Renewable Energy Procurement
Advisory services
• REIPP Procurement Programme (onshore wind, solar PV, CSP, small hydro, biomass, biogas, landfill gas)
• Small RE IPPs
• Hydro
• Cogeneration (from agricultural waste / byproducts)
• Coal (base load) • Cogeneration • Gas
• IRP 2016
• Licensing regulations
• Gas Utilisation Master Plan (GUMP)
• Small projects fund
• Biofuels
1
2
3
REIPPPP: OUTCOMES OF FIRST 5 BID WINDOWS
8
REIPPPP progress to date To date there have been 5 Bid Windows (BW) of the REIPPPP…
…contributing 6 327 MW in total
9
BW 1 • Submission date:
4 November 2011
• 28 preferred bidders
• 1 425 MW of contracted capacity
• Signature of the PPAs - 5 November 2012
BW 2 • Submission date:
5 March 2012 • 19 preferred
bidders • 1 040 MW of
contracted capacity
• Signature of the PPAs - 9 May 2013
BW 3 • Submission date:
19 August 2013 • 17 preferred
bidders • 1 457 MW of
contracted capacity
• Signature of the PPAs - 11 December 2014 (except 2 projects to be signed by late 2015)
BW 3.5 • Submission date:
31 March 2014 • 2 preferred
bidders • 200 MW of
contracted capacity
• Signature of the PPAs - expected mid 2015
BW 4 • Submission date:
18 August 2014 • 26 preferred
bidders • 2 205 MW of
contracted capacity
• Announcement of 13 preferred bidders on 16 April 2015
• 13 additional bidders were announced on 7 June 2015
• Expedited window – Bid Evaluation stage
To date, 48% (i.e. 6 376 MW) of the total targeted RE capacity of 13 225
MW has been procured. More than half of the wind power has been procured
to date (3 357 MW or 53% of the 6 360 MW determined capacity for wind). For CSP 50% or 600 MW of the determined
capacity of 1 200 MW has been procured. Power procured from solar PV has reached 49% of the 4 725 MW determined while only 15% of the 540 MW allocated to small hydro, landfill gas, biomass have been procured to
date
10
For small scale renewable energy projects 400 MW have been determined. During the last quarter 49 MW has been procured under BW 1S2. The 49 MW include 30 MW from solar PV, 9 MW from wind power and 10 MW from biomass. This represents 12% of the allocated capacity for smalls
Procurement progress against Determination
540 MW
79 MW
10 MW
4,725 MW
2,292 MW
965 MW
1,200 MW
600 MW
100 MW
6,360 MW
3,357 MW
946 MW Operational
Procured
Procured vs determined
Determined
6 360 MW
Procured
1 200 MW
4 725 MW
540 MW
Capacity Per technology (MW)
53%
50%
49%
15%
Operational
Operational
Operational
Procured
Procured
Procured
400 MW
49 MW
0 MW
400 MW 12%
Operational
Procured
The second bid window for small projects for which second round bid submissions are expected in May 2016 will target the procurement of a further 51 MW
1 040 MW
REIPPPP’s contribution to generation capacity Since November 2011 more than 6 327 MW from 92 renewable energy projects have been awarded – wind projects contribute
more than half of total capacity
11
BW1 BW2 BW3 BW3.5 BW 4 ALL
Capacity
MW
Number of
Projects Capacity
MW
Number of
Projects Capacity
MW
Number of
Projects Capacity
MW
Number of
Projects Capacity
MW
Number of
Projects Capacity
MW
Number of
Projects
Onshore Wind 649 8 559 7 787 7 1 362 12 3 357 34
Solar PV 627 18 417 9 435 6 813 12 2 292 45
Solar CSP 150 2 50 1 200 2 200 2 600 7
Landfill Gas 18 1 18 1
Biomass 17 1 25 1 42 2
Small Hydro 14 2 5 1 19 3
1425 28 1040 19 1457 17 200 2 2 205 26 6 327 92
1 457 MW 1 425 MW 200 MW 2 205 MW 6 327 MW
REIPPPP’s contribution to generation capacity for Free State
12
BW1 BW2 BW3 BW3.5 BW 4 ALL
Capacity
MW
Number of
Projects Capacity
MW
Number of
Projects Capacity
MW
Number of
Projects Capacity
MW
Number of
Projects Capacity
MW
Number of
Projects Capacity
MW
Number of
Projects
Onshore Wind
Solar PV 64 1 60 1 75 1 199 3
Solar CSP
Landfill Gas
Biomass
Small Hydro 4.31 1 4.70 1 9.01 2
64 1 64.31 2 75 1 4.70 1 208.01 5
Small IPP Programme Update
• 49MW of the 200MW – allocated in Oct 2015
REIPPPP SUCCESSES Up to Dec 2015
14
REIPPP Programme Successes (up to Dec 2015)
15
6 868 Gigawatthours
Power generated to date using
renewable energy procured by the
REIPPPP
4.6 Rand Billion
More in financial benefit for the
country than its cost1
2 million
Homes equivalent2
powered by electricity
generated from RE
23 044 job years3
Employment opportunities for
South African citizens during
construction and operation
WITH ONLY THE FIRST 40 IPPs CONNECTED TO THE GRID BY DEC 2015, THE REIPPPP IS ALREADY CHANGING THE SOUTH AFRICAN
ENERGY LANDSCAPE FOR THE BETTER
Note 1. Calculated financial benefit (As a result of fuel savings when displacing coal and diesel powered alternatives and the economic benefit of avoiding unserved energy during severe shortfalls – what would have resulted in power cuts if RE was not available) minus tariff payments made to IPPs (not reflecting any socio economic or secondary industry benefits); Assessment concluded by Council of Scientific and Industrial Research (CSIR), published January 2015. Note 2. Annual consumption per household based on Eskom data for residential sector and amps reported number of electrified homes in South Africa. Note 3. Equivalent of a full time employment opportunity for one person for one year.
The REIPPPP has attracted significant investment in BW 1, 2, 3, 3.5, 4 and 1S2
16 Note 1. IPP data reflects cumulative values over the construction phase and projected operational life (production phase) of the projects (i.e. 20 years). Note 2. Actuals reported for period up to March 2015
More than R6.7 billion
Free State Total project costs
3% of National commitments
Committed investments
Bid window 1, 2, 3,3.5, 4 & 1S2 (R billion)
194.1 Rand billion
Committed (total project costs1) for IPP development in BW 1, 2, 3, 3.5, 4 & 1S2
R53.4 billion from foreign investors and financiers
of which
Technology share of investment
Total Project Costs (Rand billion)
R73.7 billion
R0.3 billion R2.8 billion
R53.3 billion
R63.1 billion
R1.0 billion
38%
27%
32%
0.1%
0.5%
1%
South African Citizens Shareholding
17 Note 1. As at March 2015
Local equity secured
(R million)
The South African (local) equity shareholding across BW1 to BW4 equates to 47% (R30.7 billion) of total equity (R65.8 billion), which is substantially more than the 40% requirement. Foreign equity amounts to R35 billion and contributes 53% of total equity.
The REIPPPP contributes to Broad Based Black Economic Empowerment. Black South Africans own, on average, 29% of projects that have reached financial close
Procured RE generation capacity (2)
18
CAPACITY
Contracted (Total programme – BW 1 - 4)
92 projects
6 327 megawatts
Operational (online)1
40 projects
Capacity (MW)
2 021 megawatts
Number of projects
#
Note 1. As at March 2015
Note 1. As at Dec 2015
Local Spend
19 Note 1. IPP data reflects cumulative values over the construction phase and projected operational life (production phase) of the projects (i.e. 20 years); Note 2. Employment measured in job years (equivalent of a full time employment opportunity for one person for one year). Note 3. As at March 2015.
The REIPPP Programme represents the country’s most comprehensive strategy to date in achieving the transition to a greener economy. Local content minimum thresholds and targets were set higher for each subsequent bid window
Actual local content spend reported for IPPs that have started construction (BW1, BW2 and BW3) amounts to R27.9 billion against a corresponding project value (as realised to date) of R45.2 billion. This means 49% of the project value has been locally procured, exceeding the 45% commitment from IPPs, the thresholds for BW1 – BW4 (25% - 45%)2 and the 45% target2 of BW1
27.9 Rand billion
49%
local content achieved
(actual) spend to date on local content
Preferential Procurement Spend
20 Note 1. IPP data reflects cumulative values over the construction phase and projected operational life (production phase) of the projects (i.e. 20 years); Note 2. Employment measured in job years (equivalent of a full time employment opportunity for one person for one year). Note 3. As at March 2015.
The contracted target requirement for BBBEE is 60% of total procurement spend. However, the actual share of procurement spend by IPPs from BBBEE suppliers is currently reported as 89%, which is not only significantly higher than the target of 60%, but also the 72% that had been committed by IPPs.
The share of procurement that is sourced from Broad Based Black Economic Empowered (BBBEE), Small and Medium Enterprises (SME), Qualifying Micro Enterprises (QME) and women owned vendors are tracked against commitments and targeted percentages
Note 1. As at Dec 2015
32.0 32.0 3.9
70.9
23.3
Pl d A i Q
planned actual (inception to date + Q)
Rand billion
BBBEE spend1
(Rand billion)
89%
of total procured
103.0
Preferential Procurement Spend
21 Note 1. IPP data reflects cumulative values over the construction phase and projected operational life (production phase) of the projects (i.e. 20 years); Note 2. Employment measured in job years (equivalent of a full time employment opportunity for one person for one year). Note 3. As at March 2015.
Target Committed Actual to date
10%
90%
8%
92%
31%
69%
QME and SME share Reported (percentage)
Procurement from QME and SMEs exceeds commitments by 23% and is 31% of total procurement spend to date (while the required target is 10%)
QME and SME share of construction procurement spend totals R11.9 billion, which is almost twice the targeted spend of R4.6 billion during this procurement phase
In contrast, procurement from women owned vendors is lagging, with only 3% of the targeted 5% achieved to date
4.6 2.5 1.9
7.3 9.4
Planned Active Q
x 2.5
targeted spend
actual (inception to date + Q)
4.6
SME and QME spend1
Construction only (Rand billion)
planned
Rand billion
1.0 1.0 0.1
4.4
1.6
Planned Active Q
3%
of total procured
5.3
actual (inception to date + Q)
planned
Rand billion
Women owned spend1
(Rand billion)
Contributing to employment creation for South African citizens
22 Note 1. IPP data reflects cumulative values over the construction phase and projected operational life (production phase) of the projects (i.e. 20 years); Note 2. Employment measured in job years (equivalent of a full time employment opportunity for one person for one year). Note 3. As at March 2015.
Note 3. IPP data reflects cumulative values over the construction phase and projected operational life (production phase) of the projects (i.e. 20 years); Note 4. Employment measured in job years (equivalent of a full time employment opportunity for one person for one year). As at Dec 2015.
1 370 21 673
Construction vs operations Employment split (job years)
93%
Of planned
Numerous employment opportunities are being created by the IPPP programme. To date, a total of 23 044 job years have been created for South African citizens, of which 21 673 were in construction and 1 370 in operations.
Even though BW3 projects have only just started construction, the employment opportunities that have been reported are already at 93% of the numbers planned during the construction phase (i.e. 19 523 job years), with 23 projects still in construction and employing people. The number of employment opportunities can reasonably be expected to continue to grow beyond original expectations
Free State 2 818 job years3,4
Employment created for SA citizens
3% of national commitments
Contributing to employment creation for South African citizens
23 Note 1. IPP data reflects cumulative values over the construction phase and projected operational life (production phase) of the projects (i.e. 20 years); Note 2. Employment measured in job years (equivalent of a full time employment opportunity for one person for one year). Note 3. As at March 2015.
Note 3. IPP data reflects cumulative values over the construction phase and projected operational life (production phase) of the projects (i.e. 20 years); Note 4. Employment measured in job years (equivalent of a full time employment opportunity for one person for one year). As at June 2015.
0%
20%
40%
60%
80%
100%
BW1 BW2 BW3 BW1,2 & 3
Threshold Target Actual
Local citizen employment Actual vs target and threshold
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012/13 2013/14 2014/15 2015/16
Construction
Employment opportunities Actual (Job years) (BW 1,2 & 3)
Job years
21 673
Employment thresholds and targets were consistently exceeded across the entire portfolio, but more so by BW2 IPPs. The average share of South African citizens of total South Africa based employees for BW1 – BW3 was 88% during construction (against a target of 80%), while it was 95% during operations for BW1 – BW2 (against a target of 80%).
The construction phase offers a high number of opportunities over shorter durations, while the operations phase requires fewer people, but over an extended operating period
Labour utilisation during construction typically shows a peak, and then decreases as construction activities finish up
Employment Equity Share of persons employed during construction
24 Note 1. IPP data reflects cumulative values over the construction phase and projected operational life (production phase) of the projects (i.e. 20 years); Note 2. Employment measured in job years (equivalent of a full time employment opportunity for one person for one year). Note 3. As at March 2015.
40%
Employment equity share of persons employed in construction
53%
Disabled Local community
78% 0.1%
Black SA citizens
8%
women youths
(% job years vs total) (BW 1,2 & 3)
Youth, women and rural employment numbers Youth, women and rural employment numbers, previously excluded from mandatory reporting requirements, will be included, as far as possible, for subsequent BWs.
During the construction phases, black South African citizens and rural or local communities have been the major beneficiaries as they respectively represent 78% and 53% of total job opportunities created by IPPs to date. However, woman, the youth and disabled people could still be significantly empowered as they represent a mere 8%, 3% and 0.1% of total jobs created to date, respectively.
Socio-Economic Development (SED) and Enterprise Development EnD) Contributions
25 Note 1. 20 years operational life. Note 2 Actuals will grow exponentially as more projects reach COD; Actuals reported for period up to March 2015
Note 1. 20 years operational life. Note 2 Actuals will grow exponentially as more projects reach COD; Actuals reported for period up to Dec 2015
R 19.1 billion
Committed Realised (ITD + Q)
SED and EnD
(Rand billion)
R 19.1 billion 2.2%
of revenue
22%
In last Q
R 135.9 million
ITD Q
R 30 million
An important focus of the REIPPPP is to ensure that the build programme secures sustainable value for the country and enables local communities to benefit directly from the investments attracted into the area
IPPs are required to contribute a percentage of projected revenues accrued over the 20 year project operational life toward SED initiatives. The minimum compliance threshold for SED contributions is 1% of revenue with 1.5% the targeted level over the 20 year project operational life
Already at this early stage, with a limited number of IPPs operational, SED contributions amount to R 135.9 million to date. Of this, R30 million or 22% was spent in the last quarter ending Dec 2015.
R0.3 billion
Contribution for Free State
2% of National commitments
Categories Spend
26 Note 1. 20 years operational life. Note 2 Actuals will grow exponentially as more projects reach COD; Actuals reported for period up to March 2015
Activity spread for ED and SED Projects spend reported to date (% of total)
education
management and planning
health care
infrastructure
enterprise development
Other
social and welfare
14%
7%
3%
21%
7%
8%
Enterprise and socio-economic development commitments have been made in six categories; namely, education and skills development, social and welfare, management and planning, healthcare, enterprise development and infrastructure. All operational IPPs are required to report on the initiatives they have implemented to alleviate socio-economic challenges faced by the local communities in which they operate. The majority of SED spend allocated by IPPs has been in the education and skills development (40%) and enterprise development categories (21%). The rest of the SED spend has been shared between social and welfare (14%), management and planning (7%), healthcare (3%) and infrastructure projects (7%). About 8% has not been allocated to one of the categories or is withheld for future SED spend.
AVAILABLE BUSINESS OPPORTUNITIES
27
Available Investment & Business Opportunities Manufacturing Opportunities for Onshore Wind Energy:-
• Small wind turbines:- e.g. 0.6kW to 3kW in size
• Medium/large wind-turbine generators:- e.g. 300kW
• Large grid-connected wind turbines:- Limited quantities of components for this market sector • e.g. GRI-Renewables Industries in Atlantis (WC) transported its
first locally manufactured wind turbine to Noupoort (NC) on 19/10/2015
Available Investment & Business Opportunities CSP Value Chain:-
Materials:- steel, plastic, copper, brass, aluminium, concrete, silica, molten salt and synthetic oil. While these are generally sourced globally, many materials (including steel, plastic, aluminium, concrete and potentially synthetic oil) are available in South Africa and some can be manufactured locally.
Components:- for the collector system, steam generator system, heat storage system and electrical/control system. Some of these can be manufactured by South African engineering, aerospace and automotive companies.
Construction/assembly:- most of the construction can be undertaken by South African companies.
Available Investment & Business Opportunities Solar PV:-
South Africa has potential for local production of several components that make up a Solar PV plant including:- – Module – Inverters, – Tracking systems – Steel structures – Cabling – Transformers
Most Accessible Contracting Opportunities
CONSTRUCTION PHASE Electrical: • Materials Supply • Cable Installations • Design • Sub-station Build Logistics & Other: • Security • Labour Hire • Accommodation • Transport • Crane Hire and Installation • Cleaning • Catering
CONSTRUCTION PHASE Civil: • Concrete Works • Reinforcing Steel • Fuel Supplies • Storm Water Pipes • Cement Supply • Plant Hire • Fencing • Tipping Trucks
Most Accessible Contracting Opportunities - Continued
OPERATIONS PHASE
• Cleaning
• Gardening
• Electrical Maintenance
• Panels Cleaning
• Transport
• Security
Contact Information For any enquiries related to the IPPP Programmes,
please contact the IPP Office by using the following email address:
[email protected] Website address: www.ipp-projects.co.za
THANK YOU