On what basis is funding approved for projects that shift load greater than or equal to 500kW?

Project proposals are considered via Eskom’s governance processes, which include evaluation by various committees.

Upon acceptance by the committees, a contract will be entered into and funding awarded for a specific project on condition that a measurement and verification (M&V) plan plus baseline - drawn up and submitted by an Eskom-appointed M&V team for the project – are agreed upon and signed by the ESCo or Project Developer.

What is the payment structure for projects that shift load greater than or equal to 500kW

Verified demand shifting achieved during evening peak periods (summer 18:00 to 20:00 and winter 17:00 to 19:00) will be paid for at the end of every three-month cycle – therefore, 12 payments over the contract period of 36 months:

  • Up to 30% of the contract value will be released as a performance payment at the end of the first three months or the first performance assessment (PA1) period.
  • 70% balance of the contract value will be paid in three-month cycles over the contract period.
  • 10% will be retained per invoice submitted over the contract period in support of Eskom’s Supplier Development and Localisation (SD&L) Programme – the full amount will be repaid on proof of compliance with the contract’s SD&L requirements.
  • Eskom can request re-imbursement for overpayment if demand shifting achieved during any of the three-month payment cycles over the contract period are not sustained - all payments are performance based and dependent on performance assessment reports issued by the appointed M&V team.

    Where can ESCos and Project Developers get more information?

    You can call 08600 37566, leave your name and number, and request that an Eskom Energy Advisor contacts you. Alternatively, you can e-mail enquiries to AdvisoryService@eskom.co.za.

    It is indicated that project proposals will be considered on condition that they be submitted by any 51% Black-owned ESCo, Project Developer or business in the commercial and industrial sectors.

    How would Black-owned companies be vetted?

    B-BBEE compliance of Black-owned ESCos, Project Developers and businesses will be verified by Eskom’s Supplier Development and Localisation (SD&L) Department as per the stipulations of the Broad Based Black Economic Empowerment Act, No 53 of 2003.

    Click here for detailed information on the prequalification criteria for Esco Model funding.