REFIT project timeline

I am starting to wonder if we will see any Renewable Energy Feed-In Tariff (REFIT) projects start before 2013. If so, we can say bye-bye to meeting our abysmal 4% RE target by 2013!

Here’s why: The new Single Buyers Office (SBO). The REFIT programme is going to be moved from the National Energy Regulator (NERSA) to the SBO (“The Single Buyer Office will execute the REFIT programme in accordance with the process set out in New Generation Regulations and in accordance with the Evaluation Criteria provided by the Regulator.”)

The SBO process will consist of the following steps:

· RFQ

· RFP

· Evaluation +Selection of Preferred Bidder(s)

· Negotiation with Preferred Bidder(s)

· Financial Close

The proposed timeline for this:

Project Milestones REFIT Proposed timeline
Establishment of enabling environment........ Q3 2010
Issue of RFQ............................................. 1 month after enabling environment established
Receipt of Statement of Qualification (SOQ)..2 months after RFQ
Issue of RFP...............................................2 to 3 months after SOQ
Bid submission date ....................................3 to 6 months after RFP
Bid evaluation and selection of preferred bidders.......................2 to 3 months
Financial close.............................................Up to 6 months

So that is 1½ years from Q3 2010 at best, which takes us to 2012 before licenses are awarded.

But hang-on, who is going to staff the SBO? ESKOM employees of course. Independent in name, but he who pays the piper calls the tune! So I guess one can assume that the above timeline is rather, um, optimistic...

Frank