Power utility 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 (IPPs). <\/p>\n\n\n\n
This new programme will allow South Africa\u2019s efforts to add as many megawatts as possible to the national electricity grid to help curb load shedding.<\/p>\n\n\n\n
Eskom said that the standard offer approach enables the group to purchase cross-border energy at an established price calculated at the avoided cost of Eskom\u2019s own generation (including long- term energy purchases from local IPPs). <\/p>\n\n\n\n
“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,” it said.<\/p>\n\n\n\n
The programme is designed to simplify the procurement of energy from existing and new facilities on a short-term basis (less than three years) from the Southern African Development Community (SADC) region.<\/p>\n\n\n\n
The CBSOP fixed rates for the 2024 financial year (FY) are as follows:<\/p>\n\n\n\n Eskom said that the price is a time-of-use structure determined annually before 28 February, applicable to the next contract year.<\/p>\n\n\n\n High season comprises the South African winter months of June to August, with the remaining months being defined as the low season. FY2024 runs from 1 April 2023 to 31 March 2024.<\/p>\n\n\n\n “Eskom hopes to contract approximately 1,000MW with this programme, which will significantly reduce the current capacity constraints,” it said.<\/p>\n\n\n\n Invitations<\/strong><\/p>\n\n\n\n Eskom has invited all cross-border utilities and cross-border IPPS that meet the qualification criteria to submit applications to supply energy to Eskom.<\/p>\n\n\n\n The qualification criteria for the supply of cross-border energy to Eskom are varied, but the group specified that all applications must be connected to the South African Transmission grid and that the contracted capacity must be at minimum 20MW.<\/p>\n\n\n\n “The contracts should be of a short-term nature, ideally for a one-year period, renewable on an annual basis, not exceeding three years,” Eskom said.<\/p>\n\n\n\n “Electricity must preferably be available to the South African grid within six months of the signing of a power purchase agreement.”<\/p>\n\n\n\nEnergy rate (R\/MWh)<\/strong><\/td> High Season<\/strong><\/td> Low Season<\/strong><\/td><\/tr> Peak<\/td> R3 638.90<\/td> R1 510.14<\/td><\/tr> Standard<\/td> R909.73<\/td> R849.08<\/td><\/tr> Off-peak<\/td> R606.48<\/td> R606.48<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
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