Private Bag X59, Pretoria, 0001 Tel: (012) 317 8711 Fax: (012) 317 8793 Mineralia Centre, 391 Andries Street, Pretoria Form for submission of Expression of Interest Department of Minerals and Energy Form number/revision: Date of submission: Please visit www.dme.gov.za to learn more about the Renewable Energy Subsidy Scheme Details of Applicant: Name of company & description of ownership: Contact person: Physical address: Office number: Cell number: Postal address: e-mail address: Details of Project: Title of project: Description of Renewable Technology: Location of project (approximate direction and distance from nearest town): Installed capacity (MW or kl/year): Estimated production (MWh/year or kl/year): Estimated date of first production: Estimated date of financial close: Details of potential off-takers: BEE ownership (in line with the objectives of the BBBEEA or the LFC): Estimated total capital cost of project (R million): Other Financing Mechanisms: Yes/ Description Please provide details: No Has an application been submitted to register as a Clean Development Mechanism Project? Has the project applied for soft loans and or any other financial support instruments? Has the project registered with the Department of Trade and Industry for other South African government subsidy schemes? Note: Applying for the above is not a prerequisite to obtain a Letter of Registration but is encouraged. Specific Project Details (mandatory - please attach the following details and tick the boxes on the left): Pre-feasibility study. (Include estimates of capital, production, revenues, costs, jobs and profitability) Note: 1) The above details are essential to obtain a Letter of Registration 2) The DME will treat all project information as confidential. Delivery Details (Please post or courier this application form and any supporting material to the DME offices as indicated below. Electronic applications will not be considered). Physical address: REFSO, DME, Room C423, 4 th Floor, Mineralia Centre, 234 Visagie Street, Pretoria Postal address: REFSO, DME, Private Bag X59, Pretoria, 0001 Renewable Energy Finance and Subsidy Office. The Office can be contacted at For attention: (012) 317- 8711 or firstname.lastname@example.org if you have any queries Applicant's signature: __________________________________ Capacity: __________________________________ Date: __________________________________ Criteria for award of Letter of Registration Criteria to obtain a Letter of Registration: 1. Electronically and hand written applications, printout and submit (See: Delivery Details) an Expression of Interest form; 2. The project must use commercially proven renewable energy technologies; 3. Project must be located within borders of South Africa; 4. The project must have undergone a pre-feasibility study 5. Minimum project size (i.e. installed capacity) is 1 MW (electricity), 914 kl/y (bio-diesel) or 1495 kl/y (bio-ethanol). 6. A potential purchaser for the RE energy must be identified; 7. High probability that the project will reach financial close in the next 12 months; 8. BEE ownership of the project (in line with the objectives of the Broad-based Black Economic Empowerment Act (2003) or the Liquid Fuels Charter)*; 9. Approval by the DME. * This means 25% equity participation and active involvement in the project by historically disadvantaged individu als. Criteria to obtain a Subsidy Contract: 1. Complete and submit an application for a Subsidy Contract; 2. The project must produce renewable energy; 3. Project must be located within borders of South Africa; 4. BEE ownership of the project (in line with the objectives of the Broad-based Black Economic Empowerment Act (2003) or the Liquid Fuels Charter); 5. Submit a feasibility study that shows the total capital cost of the project will not be more than R100 million. The study must also indicate: capital cost per unit of installed capacity, planned average production levels per year, and planned number of direct jobs that will be created; 6. Minimum project size (i.e. installed capacity) is 1 MW (electricity), 914 kl/y (bio-diesel) or 1495 kl/y (bio-ethanol). 7. Positive record of decision must have been obtained for the project’s EIA. 8. The project must have reached financial closure (or closure must be subject only to subsidy award); 9. Evidence that off-take agreements with customers are in place; 10. Indications that all necessary permits and licenses have been granted. For example generator license or fuel manufacturing license (in terms of the Petroleum Products Amendment Act). 11. High probability that the project will commence within a short period after contract signature (e.g. construction within 6 months from date of signature); 12. Project must comply with section 38(1)(j) of the Public Finance Management Act; 13. Availability of subsidy funds; and 14. Approval by the DME Note: In addition to the above criteria developers are also encouraged to apply and register for other sources of assistance (e.g. CDM, soft loans and DTI subsidies). Process for awarding of Subsidy Contract: 1. REFSO secretariat will evaluate applications and make recommendations to the SGC 2. If there are more projects that meet the criteria than what the available funds can support, the DME will use a points system to rank the projects. 3. The points system will take into account: capital cost per unit of installed capacity, planned average production levels per year, number of direct jobs that will be created; 4. The DME will consider other factors such as location in rural areas and technology diversity if projects produce the same rating. 5. Approval by the DME. Subsidy Amounts 1. A capital subsidy per project of R 1 000 /kW capacity for electricity, R 273/kl capacity/year for bio- diesel and R167 /kl capacity/year for bio-ethanol or equivalents for other RE technologies. 2. Subsidy amount can never be more than 20% of total capital cost of project. 3. Minimum project size of 1 MW or equivalent, which implies a subsidy amount of R1 000 000.00 Criteria for Disbursement of subsidy funds: 1. Developer must have met all the requirements and conditions set out in the Subsidy Contract; 2. Satisfactory on-site inspection by the DME to verify commencement of construction has started; 3. Satisfactory on-site inspection by the DME to verify commissioning, 4. Release of funds for the construction of the project by the lead financier. 5. A written undertaking by an auditor that the developer maintains effective, efficient and transparent systems for financial and risk management, as well as internal controls. Important Notice: Certain cancellation conditions apply. The DME reserves the right to change any of the above criteria, processes and amounts without any prior notice. Please visit www.dme.gov.za for the latest information on the Renewable Energy Subsidy System. Notes: 1) BBBEEA refers to the Broad-based Black Economic Empowerment Act (2003). 2) LFC refers to the Liquid Fuels Charter. 3) Projects commenced with operation are ineligible.
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