A solar PV procurement method for self-consumption: Lessons learned from a commercial installation at the CSIR…

Abstract

The Council for Scientific and Industrial Research (CSIR), an entity of the Department of Science and Innovation, is a national scientific council with headquarters in Pretoria, South Africa. The CSIR Pretoria campus owns and operates 2 MW of solar PV generators designed for self-consumption of the electricity, including fixed-tilt rooftop, single-axis tracking, and dual-axis tracking systems. A PV procurement method for the solar generators evolved with each new procurement project beginning in 2015, and the method has proven critical in ensuring long-term performance and risk-reduction for the investments. This article summarizes the key concepts embedded in the cost-efficient procurement method and shares lessons learned during the procurement and operation of a 558 kW PV system that began in 2015. The PV procurement method developed by the CSIR includes three key concepts. First, the scope of work in the tender document includes the construction and the first three years of operations and maintenance. Second, the levelised cost of electricity (LCOE), not the construction price alone, determines the price ranking of bidders. Third, the winning bidder is contracted to deliver a guaranteed performance ratio (PR) at the end of the first three years of operations, otherwise face financial penalties. The net effect of these concepts provides incentives for the winning bidder to design and build a high-quality system that will deliver the predicted electricity generation at the lowest LCOE for the client. The CSIR developed and optimized this method over the course of several years and four projects. The details of the method will be published in an upcoming second edition for public and private entities to use a guideline.