Public procurement notice: Contract Award Notice
Published: 2021-11-03
Buyer: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Country: DE
Contract type: Services
Procedure: Open procedure
CPV classification: 71314000: Energy and related services | 79000000 | 79400000 | 79410000 | 79900000
Estimated value: 317300 EUR
Award criteria: The most economic tender

Technical requirements: In 2021, at the State of the Nation Address (SONA), the President of South Africa has reconfirmed that the vertically integrated state-owned utility Eskom will be separated into three state-owned entities: generation, transmission and distribution. This will lay the foundation for an efficient, modern and competitive energy system that will enable greater private sector participation and investment in generation capacity to address South Africa's ongoing power crisis.
"The Roadmap for Eskom in a Reformed Electricity Supply Industry", published by the Department of Public Enterprises, outlines a structural reform, where an independent transmission system and market operator (ITSMO) can procure electricity from a diversified, competitive generation sector on economic grounds and at least cost.
However, a detailed implementation and transition strategy, that also looks at future mandates, roles and business models as well as risks and other future opportunities for the respective Eskom divisions is still to be finalised. It is the responsibility of the divisions to define their position and revenue streams in the future South African Electricity Sector.
Against this backgorund, the South African-German Energy Program (SAGEN), funded by the German government and implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in collaboration with the Department of Mineral Resources and Energy (DMRE), Eskom and the South African Local Government Association (SALGA), was approached by Eskom (Generation) to
- provide support in analysing the implications of the planned power sector reform as well as the introduction of competitive markets for electricity/other system or ancillary services on Eskom Generation's current business model,
- assist in developing sound adaptation and transition strategies for the future, including a more renewables-based generation portfolio and potential business opportunities arising from an emerging green hydrogen economy in South Africa and globally.
1. Develop background material on international best practices and experiences for relevant adaptation and transition strategies of formerly fossil fuel dominant generation companies to renewable energy generation, with particular attention to opportunities arising from a developing green hydrogen economy in South Africa and globally (Work Package 1).
2. Conduct three two-day strategy seminars with 10-20 Eskom Generation representatives on the content of the background material with the objective of developing ideas for adaptation and transition strategies for Eskom (Generation), including strategies for participation in renewable energy generation and in an emerging green hydrogen economy in South Africa and globally (Work Package 2).
3. Summarise the results of the strategy seminars in a final report that also provides recommendations on suitable adaptation and transition strategies that can be further developed in a Roadmap under Work Package 4 (Work Package 3).
4. Develop a Roadmap on the future strategic direction for Eskom Generation based on the results and recommendation in the final report (Work Package 4).
The overall objective of the assignment is to support the generation division of Eskom ahead of its legal separation in the development of sound adaptation and transition strategies in the context of an ongoing power sector reform, including strategies to increase participation in renewable energy generation, and with particular consideration of future opportunities arising from an emerging green hydrogen economy in South Africa and globally.
In Work Package 1 the firm of consultants is asked to develop background material on the following topics, based on international experience and best practices:
- Adaptation and transition strategies of (formerly) fossil fuel dominated generation companies towards a (more) renewable energy-based generation portfolio.
- The fundamentals and functioning of relevant competitive energy markets, with a special focus on the (dominant) generator perspective and the business models and revenue streams available to them in this context.
- Potential business opportunities for renewable energy producers presented by the green hydrogen economy that is currently emerging globally and in South Africa.


Winner: CPCS Transcom Limited
Award value: 317300
Number of bids: 2