Capacity Procurement Overview

Capacity Procurement – This unit is responsible for facilitating an increase of power generation capacity in Eswatini through creating an environment that will allow the participation of Independent Power Producers (IPPs), and to encourage the integration of renewable energy technologies in the country’s energy mix through a competitive tendering approach. It drives the procurement of renewable energy power plants to ensure that the country is self-sufficient in meeting the local demands for electrical energy..

Background

Eswatini relies heavily on electricity imports to supply local demand. There is a need for development of local generation to reduce reliance on imports and to develop renewable energy options. Government is committed to encouraging private sector participation in the development of new generation capacity ▪ In July 2018, the Honourable Minister of the Ministry of Natural Resources and Energy (MNRE) announced a new energy policy setting out that new generation capacity will be procured through competitive tendering. Furthermore, the MNRE launched the Energy Master Plan and Short-term Generation Expansion Plan (SGEP) in October 2018 providing a roadmap of new generation capacity to be developed in the country. The MNRE also conducted an information gathering exercise to obtain information on generation projects that the private sector is interested in developing in the country. The Eswatini Energy Regulatory Authority (ESERA), in conjunction with the MNRE, has the responsibility for procuring new generation capacity in accordance with the Electricity Act 2007. A set of fully drafted model procurement documents that are in line with international and regional best practice (Energy Toolkit) were then prepared for the Eswatini Government through an initiative funded by the African Legal Support Facility (ALSF). The Energy Toolkit was developed to enable procurement of new generation capacity following a consistent, well managed and structured competitive tendering process. Competitive procurement of IPP projects provides a valuable opportunity for local participation in the electricity sector.

Power Generation Technologies To Be Procured

An Energy Master Plan for Eswatini was developed under the auspices of the MNRE and approved by Cabinet. This Master Plan provides a long-term roadmap for meeting the country’s energy needs with a planning horizon of 20 years. The Energy Master Plan will be updated on an ongoing basis to take account of new information e.g. new technologies, costs on technology options, etc. Emanating from the Master Plan, a Short-Term Generation Expansion Plan (SGEP) was also prepared. It focuses on the new generation capacity that can be procured in the short-term (2019-2023). The Plan also highlights that all new generation capacity identified in the SGEP will be procured through competitive tendering processes.

Document Name File Size Download Document
Maps For The Kingdom of Eswatini 9.199 MB Click Here To Download Document
Procurement Database Register 0.302 MB Click Here To Download Document
Stakeholder Workshop Presentation on Competitive Power Procurement Process in Eswatini 3.129 MB Click Here To Download Document
Registration of Interest for Participating in the Development of New Generation Capacity in Eswatini 0.278 MB Click Here To Download Document

Capacity Procurement Advert Overview