1. IPP Bidders Conferance LICENSING OF IPP PREFERED BIDDERS DoE IPP BIDDERS CONFERENCE – Presented by TAMAI HORE

2. INTRODUCTION  The IRP2010 published in May 2011 by the DoE outlines the proposed power generation mix for the period 2010 to 2030.  The IRP2010 seeks to increase the overall contribution of new renewable energy generation to 17,800MW by 2030 (42% of all new-build generation).  On 02 July 2011, the Minister of Energy issued the Determination for the IPP Procurement Programme in accordance with section 34 (1) of the Electricity Regulation Act, 2006 (No. 4 of 2006) (‘the Act’).

3. IPP Bidders Conferance  The National Energy Regulator of South Africa (NERSA) concurred with the Ministerial Determination on 07 July 2011.  The concurrence was for the procurement of 3,725MW of renewable energy from the following renewable energy sources: 1,850MW of Onshore Wind, 1,450MW of Solar Photovoltaic (PV), 200MW of Concentrated Solar Power (CSP), 75MW of small hydro(≤ 10MW), 25MW of landfill gas and 12.5MW of biomass. INTRODUCTION (Cont.)

4. IPP Bidders Conferance LICENSING OF FIRST PHASE PREFERED BIDDERS  On 07 December 2011, the DoE announced 28 preferred bidders for the first window.  NERSA subsequently received generation licence applications from preferred bidders between the third week of December and the first week of January 2012.

5. IPP Bidders Conferance LICENSING OF FIRST PHASE PREFERED BIDDERS (Cont.)  Public Hearings were held in March 2012 in four provinces.  Licences were issued on 26 April 2012.

6. IPP Bidders Conferance  Licence conditions i.e. the generation licence conditions had to be altered to cater for all parties involved including the financial institutions.  Some terms were redefined to ensure common understanding of the meaning and interpretations in the generation licence. CHALLENGES ENCOUNTERD DURING THE FIRST PHASE

7. IPP Bidders Conferance  Transferability of Gx licence. According to the Act, the generation licence is not transferable without the approval of the Energy Regulator. However, this will not prevent the Lenders from stepping in to save the project as long as this condition is met.  Some IPPs would like to Build, Own and Operate (BOO) Dx lines to connect to Eskom substations. They will then need Dx licences. NERSA has since started the process of considering such applications. CHALLENGES ENCOUNTERD DURING THE FIRST PHASE (Cont.)

8. IPP Bidders Conferance  On 21 May 2012, the DoE announced 19 preferred bidders for the second window.  Gx licence applications were received from the preferred bidders between last week of May 2012 and second week of June 2012. LICENSING OF SECOND PHASE PREFERED BIDDERS

9. IPP Bidders Conferance  Public hearings were held in two provinces and the last one is currently being held in the last province.  NERSA will finalize the licensing process by September/ October 2012. LICENSING OF SECOND PHASE PREFERED BIDDERS (Cont.) Province Number of Applicants Date WESTERN CAPE 4 13 August 2012 EASTERN CAPE 5 14 August 2012 NORTHERN CAPE 10 16 - August 2012

10. THANK YOU! IPP Bidders Conferance