Download Brief on Market Sounding Exercise

APPENDIX l: Brief on Market Sounding Exercise
Solar Water Heating Roll-out for the Department of Energy
THIS IS NOT A TENDERING EXERCISE
1.
Introduction
The Department of Energy intends to offer the first 200 000 subsidies for a
mass roll-out of Solar Water Heating Systems, as part of its attempt to deliver
one million solar water heating systems by 2014, and to reduce the load
placed on the electricity grid.
1.1. This Market Sounding Exercise is to ascertain market capacity, capability, as
well as the level of interest to provide the requisite services for the roll-out of
the Solar Water Heating Systems. In addition, we would also like to obtain
views and suggestions on operational requirements.
1.2. This document sets out the objectives of the Exercise, provides background
information and outlines the scope of services to be provided by the
prospective service providers. It does not constitute the beginning of a service
procurement process. Any submission received by the Department of Energy
in response to this exercise does not constitute any contractual agreement
between the respondent and the Department of Energy
2.
Objective of the Market Sounding Exercise
2.1. The objectives of the Exercise are to obtain up-to-date information and
feedback from public and private sector service providers on the following:
(a)
Level of interest;
(b)
Capacity and Capability of service providers to provide the service
(c)
Operational and commercial arrangements.
3. Background
Historically, the focus has been placed on balancing demand and supply by
increasing supply. The current focus is on reducing demand, since the associated
opportunity-costs support the reduction of demand rather than increasing supply.
The Minister of Energy approved the Standard Offer Policy on the 24th May 2010.
This policy is available at www.energy.gov.za/clean energy/policies.
The Standard Offer Concept is based on providing a financial incentive for the
energy savings to be derived from an initiative, irrespective of the technology
applied to achieve such savings. It is an intervention that is outcomes based with
the incentive flowing after delivery of the outcome, and subject to verification of
the energy savings.
NERSA is currently working on the rules and rebate level to enable the
implementation of the Standard Offer. It is anticipated that NERSA will publish the
rules and rebate/subsidy level for public consultation shortly.
Applying the Standard Offer to Solar Water Heating, it is intended that the
rebate/subsidy level for the deemed energy savings will reflect a Rand-value per
installed Solar Water Heater per month for the period of time required to redeem
the cost of the investment. Once the rules and rebate/subsidy levels are
pronounced as final, the Department of Energy intends to issue the first 200 000
offering of subsidies for the installation of Solar Water Heating Systems on the
basis of the Standard Offer.
The Solar Water Heater framework is premised on the home owner being issued
with a solar water heating system and the supplier of that Solar Water Heating
system will recover the capital cost of the investment by benefitting from the
rebate applied to the deemed energy savings of a working solar water heating
system over a period of time.
4. Possible Scope of Public and Private Sector Service Provision
4.1. To meet the target of rolling out one million solar water heating systems by
2014, The Department of Energy will be looking for the following services



Provision of solar water heating systems
Installation and maintenance of solar water heating systems.
Independent measurement and verification of the achieved savings.
4.2. We will also welcome any innovative ideas to assist in meeting the target.
5. Approach to Market Sounding Exercise
5.1. This Market Sounding Exercise is published on the Department of Energy’s
website (http://www.energy.gov.za, All active and prospective service
providers, and other relevant parties, are invited to partake in the market
sounding exercise. Interested parties who wish to take part in the Exercise
should respond to the questions listed in Appendix II.
5.2. In responding, interested parties should recognize that detailed and lengthy
submissions are not necessary at this stage. Nonetheless, we welcome
pertinent information on your company’s capacity, capability and views.
5.3. Respondent’s views will not be individually identified or revealed to third
parties. Information gathered will be used to streamline the procurement
exercise planned for the future. All information provided in this exercise will
be treated in confidence and will NOT be considered in any future
procurement evaluation exercise.
5.4. If you have any enquiry on the Exercise, please contact Ms. Moira Leukes of
the Department of Energy at (082) 991 0052 [e-mail: [email protected]].
5.5. This is NOT a tendering exercise. Neither the Department of Energy nor
any of its agents will be bound by responses to the Exercise. Respondents
should note that the Department of Energy will not be responsible for any
costs and expenses that may be incurred in the preparation of the necessary
information and materials.
5.6. While the intellectual property rights of the response to this Exercise will
remain the property of the respondent, the Department of Energy shall have
the right to copy, modify and do anything necessary to all materials submitted
by the respondents in connection with the Exercise.
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