ETHEKWINI Municipality’s Energy Office has issued a request for information for the emergency procurement of supplementary energy from thermal peaking power plants for a period of three years.
Sbu Ntshalintshali from eThekwini’s Energy Office explains that the request is to supply power specifically for peak demand periods. These vary according to the time of year. During the lower demand season (September 1 – May 31), peak morning times are between 07:00 – 10:00 and peak evening times are between 18:00 – 20:00. During the high demand season (June 1 – August 31), peak morning times are between 06:00 – 09:00 and the peak evening time is between 17:00 – 19:00.
Concerning the amount of energy the municipality is looking to procure, Ntshalintshali says that eThekwini Municipality conducted high-level grid connection capacity assessments in all major intake points and that generation capacity should be informed by evaluating the capacity available in the high-voltage substations. An annexure to the RFI document provides the available capacity in five major substations which potential suppliers can use as an indication of available capacity.
The RFI is targeting existing companies with excess capacity during peak hours, although those wishing to import readymade thermal power plants are also welcome to apply. Ntshalintshali says that the municipality worked on the assumption that facilities already exist. In this case, it would be a matter of refinancing and where necessary reconnecting to the municipal grid. “We have stipulated reaching commercial operation date (COD) six months from the date of appointment. Where necessary, the newly built or imported thermal peaking power plant will be considered under the same conditions,” he says.
The RFI is restricted to suppliers within the province. Ntshalintshali explains that this is “because KZN must industrialise, the province has the highest grid capacity available in the country (6000 MW), and it has not managed to attract investment in the REIPPPP. The province must create sustainable jobs for youth employment.”
With regards to funding, Ntshalintshali says that the eThekwini Municipality plans to benchmark with Eskom’s megaflex tariffs. In the medium to long term, the funding will come from revised tariff structures for IPPs connecting directly to the electrical network.
The RFI document can be accessed here.