Eskom on Tuesday launched the cross-border standard offer programme (CBSOP) for short-term energy purchases from neighbouring countries and cross-border Independent Power Producers (IPPs).
The power utility said the move gave impetus to South Africa’s efforts to add more megawatts to the national electricity grid and address load shedding.
“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.
“The programme is designed to simplify the procurement of energy from existing and new facilities in the region,” Eskom said.
Eskom said it hoped to contract around 1 000MW with the programme which will significantly reduce the current capacity constraints.
“The CBSOP enables Eskom to procure energy on a short-term basis (less than three years) from the Southern African Development Community (SADC) region.
“Eskom invites cross-border utilities and cross-border (IPPs) that meet the qualification criteria stipulated below to submit applications to supply energy to Eskom.”
More information on the programme as well as the application form can be accessed from the Eskom website via the following link: www.eskom.co.za/eskom-divisions/tx/cross-border-standard-offer-programme/
Cape Times