Eskom has launched the cross-border standard offer programme (CBSOP) for short-term energy purchases from cross-border utilities and cross-border Independent Power Producers which it says will contribute to the power utility’s ability to source more megawatts for South Africa’s ailing power grid.
“This gives impetus to South Africa’s efforts to add more megawatts as possible to the national electricity grid and address the issue of load shedding.
“Eskom hopes to contract approximately 1 000MW with this programme which will significantly reduce the current capacity constraints,” Eskom said in a statement.
The power utility said the programme is designed to “simplify the procurement of energy from existing and new facilities” in the Southern African Development Community region.
“The standard offer approach enables Eskom to purchase cross-border energy at an established price calculated at the avoided cost of Eskom’s own generation (including long-term energy purchases from local IPPs).
“It also allows for a predictable tariff, which is adjusted each year based on the regulatory-approved cost recovery mechanism and covers the variable cost of local generation,” Eskom said.
The qualification criteria for the supply of cross-border energy to Eskom are as follows:
- The programme is open to cross-border utilities and cross-border IPPs. (Host utility support must be obtained.)
- An application to sell energy to Eskom must be made in writing.
- Applicants must be connected to the South African Transmission Grid.
- The minimum contracted capacity of a project shall be 20 MW and the maximum contracted capacity shall be based on the availability of transmission evacuation capacity at the connection point.
- Procurement of power will be based on the plant-performance needs of the Eskom Transmission System Operator and will be technology agnostic; the plant must be dispatchable flexible generation that should be able to provide energy, capacity, and ancillary services and should be able to generate between 05:00 and 22:00 in line with cross-border billing requirements.
- The contracts should be of a short-term nature, ideally for a one-year period, renewable on an annual basis, not exceeding three (3) years.
- Electricity must preferably be available to the South African grid within six (6) months of the signing of a power purchase agreement (PPA).
- Applicants must be compliant with the relevant South African Grid Code(s) and have a licence to generate and sell energy to Eskom.
- All contracting will be governed by South African law.
- The contracted currency is to be the South African rand (ZAR).
More information on the programme, the fixed rates as well as the application form can be accessed from the Eskom website via the following link: https://www.eskom.co.za/eskom-divisions/tx/cross-border-standard-offer-programme
Meanwhile, Eskom has announced on social media site X that load shedding will remain suspended until 4pm on Wednesday.
“The continued suspension of load shedding for more than four days is due to sufficient emergency generation reserves and the anticipated evening peak demand for today of 27 482MW. Stage 1 load shedding will resume on Wednesday from 16:00 until 05:00 on Thursday.
“Thereafter, load shedding will be suspended until 16:00. This pattern will be repeated daily until further notice. Eskom will communicate should any significant changes occur,” Eskom said. - SAnews.gov.za
