Eskom on Monday launched three new power procurement programmes to add more electricity to the country’s grid urgently.
The utility said the programmes were expected to contribute over 1,000 megawatts (MW) of additional generating capacity to help reduce the load-shedding burden on consumers.
1,000MW is equal to about one stage of load-shedding.
Eskom said the aim was to sign the first power supply agreement this week and for power from the deal to be added to the grid as “soon as possible”.
“Initially, the programmes will focus on generators capable of supplying more than 1MW to the grid,” the utility explained.
“Over time, the threshold will be lowered to enable smaller producers to participate.”
The first of the three initiatives is the Standard Offer Programme, which will procure power from companies with existing generation capacity for three years.
Under this programme, Eskom will purchase electricity at an established price calculated at the avoided cost of its own generation — including long-term energy purchases from independent power producers.
“The standard offer allows for a static price, which is established each year based on the regulatory approved cost recovery and covers the variable cost of generation,” Eskom said.
“It also allows for a dynamic price option where the price is set day-ahead for each hour of the following day, indicating the avoided cost of generation based on internal scheduling of generators.”
The second programme will focus on emergency generators that can provide power for use during periods when the grid is significantly constrained. This generation will be bought at higher prices.
“The programme allows for independent generators to provide energy daily to compete with the Eskom generators in the internal market,” Eskom said.
“The independent generators will supply into the grid based on the offer price and availability provided.”
Power beyond our borders
Lastly, the Bilateral Power Import Programme seeks to secure power imports from neighbouring countries.
“Several countries have expressed an interest in selling additional surplus power to South Africa,” Eskom said. “The programme will provide a mechanism to access such opportunities.”
Eskom already gets electricity from other countries through the Southern African Power Pool, with an average of 200MW used to augment Eskom generation capacity when the grid is constrained.
However, it exports much more electricity overall.
Due to the utility’s fixed contracts with other countries, it must supply a combined 1,830MW to them at any given time.
