South African power utility has launched the cross-border standard offer programme (CBSOP) for short-term energy purchases from cross-border utilities and cross-border Independent Power Producers (IPP).
According to Eskom, the CBSOP will contribute to its ability to source more megawatts for the struggling 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,” a statement said.
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. - SAnews.gov.za
