Northern Cape Business Opportunities in the Energy Sector Workshop for Women 23-24 June in Kimberley

Perspective on the REIPP programme in SA and the investment and business opportunities offered by the REIPP programme

By: Angelique Kilian Presentation Outline

• Context for the IPPP Programme • The role of the IPPP Office • REIPPPP Progress to Date • REIPPPP Successes • Significant Investment in BW’s • Development Oversight Unit • REIPPPP Status Report • REIPPPP Project Locations – NC • REIPPPP Contracting Opportunities 2 Context for the IPPP Programme

3 Role of IPP Office

The activities of the office are in Services provided: accordance with: 1 Professional advisory services − the capacity allocated to renewable energy and non-renewable generation Procurement management in the Integrated Resource Plan (IRP) 2 IPP Office services 2010; Monitoring, evaluation and − subsequent ministerial 3 contract management services determinations; and − DoE support service requirements Purpose: Delivering on the IPPPP objectives

4 REIPPPP Progress to Date

BW 1 BW 2 BW 3 BW 3.5 BW 4

• Submission date: • Submission date: • Submission date: • Submission date: • Submission date: 4 November 5 March 2012 19 August 2013 31 March 2014 18 August 2014 2011 • 19 preferred • 17 preferred • 2 preferred • 26 preferred • 28 preferred bidders bidders bidders bidders bidders • 1 040 MW of • 1 457 MW of • 200 MW of • 2 205 MW of • 1 425 MW of contracted contracted contracted contracted contracted capacity capacity capacity capacity capacity • Signature of the • Signature of the • Signature of the • Announcement • Signature of the PPAs - 9 May PPAs - 11 PPAs - expected of 13 preferred PPAs - 5 2013 December 2014 mid 2015 bidders on 16 November 2012 (except 2 April 2015 projects to be • 13 additional signed by mid bidders were 2015) announced on 7 June 2015

5 REIPPP Programme Successes (up to March 2015)

WITH ONLY THE FIRST 37 IPPs CONNECTED TO THE GRID BY MARCH 2015, THE REIPPPP IS ALREADY CHANGING THE SOUTH AFRICAN ENERGY LANDSCAPE FOR THE BETTER

3.3 800 1 17 707 Terrawatthours Rand million million job years

Power generated to More in financial Homes equivalent Employment date using benefit for the powered by opportunities for renewable energy country than its cost electricity South African procured by the generated from RE citizens during REIPPPP construction and operation

6 Significant Investment in BW’s

Planned Actuals2 (Total project cost 1) (Achieved during construction phase) Total project costs Constructions costs to date 193Rand billion 42.4Rand billion Local content of which locally procured Local content to date Rand65 billion 20.3Rand billion

Note 1. IPP data reflects cumulative values over the construction phase and projected operational life Note 1. IPP data reflects cumulative values over the construction phase and projected operational life 7 (production phase) of the projects (i.e. 20 years). Note 2. Actuals reported for period up to March 2015 (production phase) of the projects (i.e. 20 years). Note 2. Actuals reported for period up to March 2015 Development Oversight Unit

• Our major focus currently is to monitor and report on the developments in the (REIPPPP) in terms of Economic Development Obligations, during Construction Phase (1-2 years) and Operation Phase (20 years) • Local Content (% of Project Spend to SA’s companies) • Job Creation (Black people in the project, from unskilled to skilled; from neighbouring communities) • Preferential Procurement (BBBEE; SMMEs; Women Owned) • Socio -Economic Development (% of Revenues towards Social Upliftment, e.g. clinics, etc.) • Enterprise Development (% of Revenues towards developing Enterprises locally, especially black SMMEs) • Ownership by Local Communities (min 5% max 20%) through a Trust • Black Ownership (BEE Partner)

8 REIPPPP Status Report (End March 2015)

Achieved Value Economic Development Element Description Northern BW1 BW2 Cape Local Content Value of Local Content Spend R 12.9 bn R 7.0 bn R 12.1 bn PERFERENTIAL PROCUREMENT 500-SR-01 BBBEE Procurement Spend R 15.3 bn R 8.1 bn R 13.9 bn 500-SR-02 QSE and EME’s Procurement R 4.8 bn R 3.4 bn R 5.1 bn 500-SR-03 Woman Owned Vendors R 0.38 bn R 0.29 bn R 0.41 bn Enterprise Development ENTERPRISE DEVELOPMENT R 17.8 mn R 1.6 mn R 7.2 mn Contributions Socio-Economic Development SOCIO-ECONOMIC DEVELOPMENT R 46.5 mn R 6.0 mn R 30.2 mn Contributions

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REIPPPP NC Project Locations

District Municipality Nearest Town BW IPPID Project Name MW Tech Frances Baard Sol Plaatjie Kimberley 1 IPPID572 Droogfontein 45.6 PV Kimberley 4 RE_PV_0028_002 Droogfontein Solar Park 75 PV John Taolo Gaetsewe Gamagara Kathu 1 IPPID444 Kathu Solar Energy Facility 75 PV (Kgalagadi) Kathu 2 IPPID207 Sishen Solar Facility 74 PV Kathu 3.5 RE_CS_0066_001 100 CSP Joe Morolong Hotazel 3 RE_PV_0006_004 Adams Solar PV 2 75 PV Namakwa Khâi-Ma Pofadder 1 IPPID118 KaXu Solar One 100 CSP Pofadder 1 IPPID128 Konkoonsies Solar 9.7 PV Pofadder 3 RE_CS_0056_001 !XiNa Solar One 100 CSP Pofadder 4 RE_PV_0046_012 Konkoonsies II Solar 75 PV Aggeneys 4 RE_PV_0308_001 Aggeneys Solar 40 PV Hantam Loeriesfontein 3 RE_OW_0028_017 Khobab Wind 137.74 OW Loeriesfontein 3 RE_OW_0028_001 Loeriesfontein 2 138.23 OW Loeriesfontein 4.5 RE_PV_0050_001 Solar Capital Orange 75 PV Karoo-Hoogland Sutherland 4 RE_OW_0016_003 Roggeveld 140 OW Sutherland 4 RE_OW_0024_008 Karusa Wind Farm 139.8 OW Sutherland 4.5 RE_OW_0024_009 The Soetwater Wind Farm 139.4 OW Nama Khoi Springbok 4.5 RE_OW_0028_016 Kangnas 136.7 OW

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REIPPPP NC Project Locations

District Municipality Nearest Town BW IPPID Project Name MW Tech Pixley Ka Seme Siyancuma Douglas 1 IPPID443 Greefspan PV Power Plant 10 PV Douglas 1 IPPID696 Herbert PV Power Plant 19.9 PV Douglas 4.5 RE_PV_0083_001 Greefspan PV Power Plant No. 2 Solar 55 PV Park Siyathemba Copperton 1 IPPID065 Mulilo Solar PV Prieska 19.9 PV Copperton 3 RE_PV_0269_002 Mulilo Sonnedix Prieska 75 PV Copperton 3 RE_PV_0269_003 Mulilo Prieska PV 75 PV Copperton 4.5 RE_OW_0235_001 Copperton Windfarm 102 OW Copperton 4.5 RE_OW_0263_001 Garob Wind Farm 135.93 OW Emthanjeni De Aar 1 IPPID064 Mulilo Solar PV De Aar 10 PV De Aar 1 IPPID182 48.3 PV De Aar 1 IPPID564 Solar Capital De Aar 75 PV De Aar 2 IPPID168 Solar Capital Aggenys 75 PV Hanover 2 IPPID523 Linde 36.8 PV De Aar 3 RE_OW_0009_002 Longyuan De Aar North 138.96 OW De Aar 3 RE_OW_0009_003 Longyuan Maanhaarberg 96.48 OW Renosterberg Phillipstown 1 IPPID159 Kalkbult Solar Park 72.5 PV Umsobomvu Noupoort 3 RE_OW_0028_004 Noupoort 79.05 OW Ubuntu Victoria West 1 IPPID036 Noblesfontein Wind Farm 73.8 OW

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REIPPPP NC Project Locations

District Municipality Nearest Town BW IPPID Project Name MW Tech ZF Mgcawu District Kai!Garib Kenhardt 1 IPPID163 Aries Solar 9.7 PV (Siyanda) Kakamas 2 IPPID815 Neusberg Hydro 9.99 Hydro !Kheis Groblershoop 2 IPPID002 Bokpoort CSP Project 50 CSP Khara Hais Upington 2 IPPID764 Upington Solar PV 8.9 PV Upington 1 IPPID798 50 CSP Upington 4 RE_PV_0006_008 Sirius Solar PV Project One 75 PV Upington 4 RE_PV_0045_012 Dyason's Klip 1 75 PV Upington 4 RE_PV_0045_013 Dyason's Klip 2 75 PV Upington 3 RE_CS_0040_001 Ilanga CSP 1 100 CSP Tsantsabane Postmasburg 1 IPPID032 Lesedi Power Company 64 PV Postmasburg 2 IPPID562 Jasper Power Company 75 PV Postmasburg 3.5 RE_CS_0247_001 Redstone 100 CSP

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REIPPPP Contracting Opportunities

CONSTRUCTION PHASE CONSTRUCTION PHASE Electrical: Civil: • Materials Supply • Concrete Works • Cable Installations • Reinforcing Steel • Design • Fuel Supplies • Sub-station Build • Storm Water Pipes • Cement Supply Logistics & Other: • Plant Hire • Security • Fencing • Labour Hire • Tipping Trucks • Accommodation • Transport • Crane Hire and Installation • Cleaning • Catering

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REIPPPP Contracting Opportunities

OPERATIONS PHASE • Cleaning • Gardening • Electrical Maintenance • Panels Cleaning • Transport • Security

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Contact Information

For any enquiries on the IPP Programmes please use the following email addresses:

• 1. For small projects (1MW to 5MW): [email protected]

• 2. For bigger projects: [email protected]

• Website address: www.ipp-renewables.co.za AND www.ipp-projects.co.za

Future programmes’ information such as Co-generation and Coal would be communicated in due course

17 Further Contact: [email protected] IPP Office Tel: 087 351 3015 Cell: 072 473 9519