In an advertisement in the “Sunday Times” newspaper, the department said the bids could cover energy produced from wind, solar, hydro, bio-gas, bio-mass or landfill gas.
The government is aiming to purchase 1,000 megawatts (MW) of renewable energy by 2013 and 3,800MW by 2016, according to a cabinet briefing last week.
Upon registration, bidders must pay US$15,000 for every megawatt of installed capacity they propose to build, the department said. A mandatory briefing session for project developers would be held on 14 September.
The National Treasury is looking at other incentives to encourage investment in the renewable energy industry, including a levy of 2.5 cents per kilowatt hour on electricity generated from non-renewable sources, a tax on carbon dioxide emissions, and tax concessions for bio-fuel producers, according to the minister of finance.