Request to the Department of Energy for information in relation to the Thabametsi and Khanyisa power stations and the IRP
12 October 2018
- Department of Energy
- Reference Number:
Information was requested in relation to the proposed and appointed preferred bidders under the first bid window of the Coal Baseload Independent Power Producers Procurement Programme (CBIPPP) – the Thabametsi power station project proposed by Thabametsi Power Company (Pty) Ltd and the Khanyisa power station project proposed by ACWA Power Khanyisa Thermal Power Station RF (Pty) Ltd (“the coal IPPs”):
- 1. Government Support Framework Agreement (GSFA) with Eskom as the buyer of electricity produced by IPPs, entered into by Ministers of Finance, Energy and Public Enterprises in November 2012 and any schedules thereto, referred to in slide 19 of the IPP presentation given by the Minister of Energy on 6 March 2018 (attached);
- all draft or signed schedules to the GSFA, relating to the coal IPPs;
- all subsequent GSFAs and schedules thereto;
- all records of existing or proposed guarantees by the Department of Energy (DoE) for the coal IPPs;
- records reflecting the current status of the coal IPPs’ process (i.e. the status of all decision-making processes and what steps have been taken and still need to be taken towards reaching commercial and financial close, in relation to Thabametsi and Khanyisa specifically, as the two preferred bidders under the CBIPPP);
- records reflecting the current status of the CBIPPP (i.e. whether there will be any further bid windows);
- records confirming any determined or intended financial and commercial close deadlines for the coal IPPs;
- records of consideration of the requirements in regulation 9(2)(a), read with regulation 9(1) of the Regulations on New Generation Capacity (“New Generation Regulations”) under the Electricity Regulation Act, 2006 (ERA) in relation to the coal IPPs, and any decision or decisions taken in terms of regulation 9(2)(a) including decisions as to whether either or both of the coal IPPs are value for money;
- records of the consideration of the “technical, operational and financial risk transfer to the generator”, in terms of regulation 9(1)(b) of the New Generation Regulations and as referred to in slide 19 of the IPP presentation by the Minister of Energy of March 2018 (attached) – in relation to the coal IPPs;
- the “mechanisms” for implementation, management, enforcement and monitoring of each of the coal IPPs’ power purchase agreements (PPAs), as required by regulation 9(1)(c) of the New Generation Regulations;
- the “due diligence” report in relation to matters of competence and capacity to enter into the PPA, in terms of regulation 9(1)(d); of the New Generation Regulations – in relation to the coal IPPs;
- the contract management plans in terms of regulation 9(2)(b) of the New Generation Regulations, that explain the capacity of the buyer (Eskom), and its proposed mechanisms and procedures to effectively implement, manage, enforce, monitor, and report on the PPAs and any other agreements relating to a new generation capacity project to which the buyer is a party, to National Treasury and the Minister on a regular basis – in relation to the coal IPPs;
- records of any arrangements (in terms of regulation 9(2)(b) of the New Generation Regulations) put in place by Eskom or the DoE to ensure that any portion of Eskom’s allowable revenue approved or allocated by NERSA for purposes of implementation of new generation capacity projects will be used solely for the purpose of ensuring that the buyer’s financial obligations in respect of new generation capacity projects will be met – in relation to the coal IPPs;
- the “cost recovery – NERSA letter to Eskom approving signature and coverage under the Cost Recovery Mechanism”, referred to on slide 19 of the IPP presentation (annexure A to this letter) – in relation to the coal IPPs; and
- the PPAs or proposed PPAs for the coal IPPs and any written objections to these agreements including from Eskom.
In relation to the draft Integrated Resource Plan for Electricity published for comment on 27 August 2018 (“draft IRP 2018”):
- the Plexos modelling input and output data used for the draft IRP 2018, to be made available and executable in formulas intact in Excel form; and
- the data and records that informed the emissions externality costs referred to in Table 3 (page 25) of the draft IRP 2018.
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