Part 1 Revenue Application: Multi-Year Price Determination ... - Eskom

Overview of Multi-Year Price Determination
2013/14–2017/18 (MYPD 3)
The Department of Energy’s renewable energy IPP programme
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The DoE has embarked on a three-round programme to procure a total of 3 725MW in
renewable energy from IPPs. To date the department has awarded round 1 and round 2
allocations. The final round is still to be determined.
All three rounds have been included in this MYPD 3 application pursuant to the
determination made by the Minister of Energy.
Eskom‟s role from this point on will be to sign power purchase agreements with the IPPs and
connect them to the national grid. The contracts are subject to various assumptions,
including load factors, availability and timing of grid connection. Should the awarded IPP
generators not be completed on schedule or fail to achieve their desired load factors,
Eskom‟s generators will be expected to compensate for the resulting shortfall in energy
supply. Eskom‟s assumptions on IPPs over MYPD3 was based on guidance provided by
government during interactions on the price application for MYPD3.
Table 16: Capacity of Department of Energy’s renewable energy IPP programme (MW)
MYPD 3
Wind 1 500
Concentrated solar power (CSP) 200
Solar 1 900
Hydro 75
Other 50
Total renewables capacity (MW) 3 725
Table 17 depicts the costs and expected generating capacities of the DoE‟s peaking IPP,
MTPPP, short term purchases and the renewable energy IPP programme. Table 18 gives a
further breakdown of the figures for the DoE peaking station. These show the price impact
and increase, capacity and load factors over the MYPD 3 period.