The CSIR has developed a tender package and evaluation criteria to assist the East London Industrial Development Zone (ELIDZ) with procuring electricity generated from renewable sources, specifically electricity that is generated by solar photovoltaic plants. ELIDZ is part of a sub-regional economic growth and employment creation initiative driven by the government’s micro-economic reform strategy, as implemented by the Department of Trade, Industry and Competition.

The CSIR supported the ELIDZ energy transition programme by deploying its researchers to develop a Request for Proposal document based on the Build, Own, Operate and Transfer model. The model does not require ELIDZ to fund initial capital investments, but it requires it to purchase electricity at competitive tariffs from the preferred developer on the Power Purchase Agreement, with the intent to take over the plant at the end of the 10-year agreement. Technically, the buyer pays higher electricity costs during the initial agreement period with a forecast of making profits during the remaining period of the plant’s lifetime.

A well-built, high-quality solar photovoltaic plant with proper periodic maintenance is set to produce at least 80% of its rated capacity well after 20 years. To protect buyer interest, the CSIR researchers emphasise the quality and reliability of the system, while introducing a performance evaluation metric, with guaranteed annual values. The preferred developer will invoice for the electricity supplied monthly, while evaluating the plant performance annually and submitting a compliance report to be assessed and reviewed by ELIDZ.