IDC readies for Round Two

HE Industrial Development Corporation (IDC), which was set up in 1940 to promote economic growth and industrial development, is on the brink of submitting its bid submissions for Round Two of the Independent Renewable Energy Power Producer Procurement Programme (IREPPP) which has been formulated to kick-start the shift towards renewable energy in South Africa.

Towards the end of 2011, the IDC approved funding for 17 of the 53 submissions for Round 1. Of the 53, 28 received Preferred Bidder status. Of the 17 financed by the IDC, 12 were successful in the first round and comprise two concentrated solar projects, four wind power producers and six photovoltaic producers as follows:

Ka Xu CSP Trough: 100MW;

TKhi CSP Tower: 50MW; Redcap Kouga Wind Farm: 80MW; Cookhouse 135MW; Dassieklip 26MW; Dorper: 97MW; Aries Solar: 10MW; Konkoonsies Solar: 10MW; Rustmo1 Solar Farm: 7MW; Mulilo: 10MW; Mulilo (Prieska): 20MW; and, Slimsun: 5MW. The IDC has approved R5.2 billion for the implementation of the 12 projects which are located in the Northern Cape, Western Cape, Eastern Cape and North West. The 12 projects are expected to significantly boost economic activity in these areas.

Rentia van Tonder, Head of the IDC’S Green Industries Business Unit – which develops and

Wind

Wind

Farm:

Energy: invests in environmentally friendly industries – says all 12 preferred bids have integrated broad based BEE participation through including their relevant surrounding communities.

She explains that through doing so, the bidders are also serving to enhance the localisation of green industries in South Africa.

Post round one bid, IDC CEO Geoffrey Qhena extended his compliments to the successful bidders: “We congratulate all successful bidders on their commitment to building capacity within the renewable energy generation sector. The IDC is mandated to play a significant role in implementing the New Growth path (NGP) and renewable energy generation is a key part of the green industries sector prioritised in the NGP.”

Most of the bidders who were initially unsuccessful are planning to re-submit their bids in Round Two. Van Tonder is confident that these bid- ders will meet all the necessary prerequisites this time round.

Overall the IDC is playing an integral role in South Africa’s green shift. In total, the IDC has made available R25 billion to be invested over the next five years for the development of projects and industries that enhance South Africa’s transition to a