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Independent Power Producer Procurement Programme

Coal Baseload IPP Procurement Programme:

The power generated from this programme must be new generation capacity, as defined in the New Gen Regulations. For the purposes of this programme, the refurbishment of existing coal-fired power generation units will not be considered as new generation capacity. The facility shall not include retrofit or refurbished plant or equipment. It shall be new plant and equipment installed on a greenfield or previously cleared brownfield site.

Therefore, Bidders who wish to use existing coal-fired power plants for the purposes of their projects must ensure that the existing equipment and machinery used for the generation of electricity on the proposed project sites are completely decommissioned and that a completely new facility is built on the existing site in order to participate in this programme.

This programme will procure coal fired power generation technology that include boilers of the pulverised coal or fluidised bed type. The boilers combust coal to generate heat, which in turn is used to create high pressure and temperature steam that is then expanded in the steam turbine. The mechanical energy produced in the steam turbine is then converted to electrical energy in the generator.

The difference in the two boiler technologies is that pulverised coal technology uses coal that has been ground in a mill to a fine, micron sized powder. This pulverised coal is then injected into the boiler furnace with air via burners. Whereas fluidised bed combustion technology uses coarser, millimetre sized coal which is primarily combusted in a bed that is fluidised with air at the base of the furnace.

Notices and Alerts

First Bid Submission Phase

The Evaluation of the First Bid Submission Phase is completed. Bidders will in due course be advised of the outcome.

Delay Notice

The Department would like to bring to your attention that the Coal Baseload Bid Window 2 Submission Dates have been postponed. New Dates will be communicated in due course via the website and a Briefing Note.

The Department loaded all the volumes of the RFP containing Bid Returnable Schedules onto the Website
The last date for Bidders to submit written questions in terms of clause 33 (Time for requests and clarifications) of the RFP Part A is extended to close of business on 08 May 2015.
The Bidders' Conference date will be announced at a later stage by way of a Briefing Note.
The cost of R 200 000 (two hundred thousand Rand) for the RFP is per project irrespective of when it is submitted.

Press Centre


Published on: 15 December 2014
The Department of Energy ("the Department") formally invites interested parties with relevant experience to submit proposals for the finance, construction, operation, and maintenance of coal baseload power generation facilities adopting power generation from either of pulverised coal or fluidised bed type technologies for the purpose of entering into, inter alia, an Implementation Agreement with the Department and a Power Purchase Agreement with Eskom Holdings SOC Limited as the buyer.
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IPP Coal Bid Window 2 - TBA

BW2 Last Date for Bidders to submit written questions
BW2 Bid Submission Notification Opens
BW2 Bid Submission Notification Closes
Second Bid Submission Date

IPP Coal Bid Window 1 - 2 November 2015

BW1 Issue of the RFP 15 Dec 2014
Submission of Affected Projects 23 Feb 2015
First Bid Submission Date 02 Nov 2015
BW1 Last Date for Bidders to submit written questions 12 Oct 2015
BW1 Bid Submission Notification Opens 31 Jul 2015
BW1 Bid Submission Notification Closes 14 Oct 2015

About the Coal Baseload IPP Procurement Programme

The Coal Baseload IPP Procurement Programme has been designed to procure capacity and energy derived from 2 500 (two thousand five hundred) megawatts of coal-fired power generation. The new generation capacity to be provided in the first bid window, will be required to be connected to the grid as quickly as possible and by no later than December 2021. The main feature of the Coal Baseload IPP Procurement Programme is to facilitate the participation of independent power producers in the baseload power generation capacity industry in South Africa which will provide, amongst others increased energy security and contribute towards socio-economic and sustainable growth objectives.

It is envisaged that in the Bid Submission Phases of the Coal Baseload IPP Procurement Programme, Bidders will be able to submit Bid Responses in relation to:

  • projects where the Buyer shall be the sole purchaser of the capacity and energy generated by a Bidder's proposed Project (Single Buyer);
  • projects where the Buyer is 1 (one) of 2 (two) buyers of capacity and or energy generated by a Bidder's proposed Project (Multiple Buyer); and
  • projects in respect of which the facility is situated in a country other than the Republic of South Africa (Cross Border).

The driving force behind the Programme is the procurement of capacity and energy at highly competitive levels. Consequently, price is of paramount consideration in the Programme however, it is recognised that Economic Development is also a fundamental component of a successful procurement programme. Compliant bids will therefore be evaluated on a comparative basis, in relation to price and economic development. Bidders will be required to specify the prices to be paid by the Buyer in respect of the achieved capacity made available and for the supply of energy.

Interested parties are advised that Bid Responses must be submitted in accordance with the Request for Qualification and Proposals ("RFP") and the bid rules set out therein.

Bid Responses which are submitted must be accompanied by a Bid Guarantee in the form of a bank guarantee for an amount equal to R150 000 (one hundred and fifty thousand Rand) per MW of the contracted capacity of the proposed facilities for the Project in respect of which a Bidder submits a Bid Response. Bid Responses must also remain open and capable of acceptance by the Department for 365 (three hundred and sixty five) days from the Bid Submission Date (as defined in the RFP).

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