Procurement models applied to independent power producer programmes in South Africa

• The REIPPPP is largely viewed as a positive and innovative programme • We need a base load procurement model that builds on the successes of the REIPPP and extends these to base load IPPs • Eskom’s future financial health presents a significant risk to procurement of renewables, thermal baseload and nuclear power • The contribution to socio-economic development should be extended to all other IPP procurement • There is signficant risk that political considerations may override rational planning in relation to nuclear power • Procurement should be well-designed upfront, flexible, plans indicative, the regulator active and procurement more vibrantly competitive R E S E A R C H