Wind power procurement opportunities

MBABANE – ESERA is looking for businesses that may have an interest in participating in a future wind power procurement tranche.

The Eswatini Energy Regulatory Authority (ESERA) has issued a Request for Expression of Interest (REOI) which constitutes the formal invitation to businesses to submit their detailed Expression of Interest, in relation to wind power project development in Eswatini.

ESERA said they should further be interested in participating in independent power producer programme for wind power projects in Eswatini.

“This REOI is not a Request for Qualifications, Request for Proposals or call for tenders. This REOI merely seeks to identify those who may have an interest in participating in a future wind power procurement tranche,” mentioned ESERA.

The deadline to make submissions is February 24, 2022.

Due to increased uncertainty in the security of supply and increasing tariffs in the southern African region, the government through ESERA initiated a procurement programme to reduce the country’s reliance on imported electricity by encouraging the development of local power generation capacity for national grid purposes.

Availability

This expression of interest has been issued in an effort to assist ESERA gain a better understanding of the wind resource availability as well as to assess the market’s readiness to develop Independent Power Producer (IPP) projects for wind energy in Eswatini.

Information on wind resource availability in Eswatini is limited to non-bankable studies conducted in past times, including some information in the Energy Master Plan 2034. ESERA said the received EOI would be used to evaluate the markets appetite and readiness to develop IPP projects based on wind technology in Eswatini and would further inform decisions with regards to wind power procurement.

“Participating in this REOI is not a pre-condition for participating in future wind power related procurement activities,” added ESERA.

Expression

ESERA Chief Executive Officer (CEO) Sikhumbuzo Tsabedze in the expression of interest documents said respondents of the REOI shall provide their company profile including their ownership structure.

In the case of a joint venture or consortium, he said such information was required from each member, including the role of each member in relation to the REOI. “Respondents are expected to demonstrate their ability and experience in successfully developing Build Own Operate (BOO) power projects within the last 10 years. They are to specify capacity (MW) of renewable energy projects (Wind or Solar PV) that have reached financial close at utility scale,” added the CEO.

Tsabedze mentioned that the respondents were expected to have a team with the required combination on expertise and experience including Engineering Procurement and Construction (EPC), financial expertise and environmental specialist.

It was noted that the estimated price range required to finance the wind projects should be provided, but this price range was not binding on the respondent. towards this project would assist subside the demand of electricity locally. EEC said their objective in the next five years was to increase local generation of electricity and deliver affordable and reliable electricity while simultaneously ensuring long-term financial stability of the company. They said they also aim to promote growth of local suppliers and value chains within the realms of affordability and requisite quality standards; and have a culture of accountability, high performance, and good customer experience.

“The strategy requires that we critically exhibit the company values of service excellence, respect, social responsibility, honesty and integrity. We look to our stakeholders to hold us accountable and actively assist us to achieve the same,” EEC said.

Business Eswatini (BE) and Eswatini Energy Regulatory Authority (ESERA) organised ‘Power-Talks’which took place at the BE War Room.