What are the Government database regulations

All suppliers need to be registered on the government database.

Does the ESCo Model cater for one type or different types of projects

Black-owned Energy Services Companies, Project Developers or businesses in the commercial and industrial sectors are invited to either:

  • Submit proposals for projects that shift demand greater than or equal to 500kW (kilowatt) outside peak periods on weekdays or;
  • Submit proposals for projects that shift demand between 250kW and 1,200kW (kilowatt) outside peak periods on weekdays.
  • What are the criteria for projects that shift demand between 250kW and 1,200kW (kilowatt)?

    Proposals for projects that could shift demand between 250kW and 1,200kW (kilowatt) will be considered on condition that:

  • Projects be submitted by Black-owned Energy Services Companies, Project Developers or businesses in the commercial and industrial sectors;
  • Projects be implemented within 6 months at a maximum of five sites (preferably in close proximity to each other) with a minimum demand shift of 50kW per site;
  • Load shifting be achieved during evening peak periods (as specified in Eskom’s Megaflex Time of Use tariff); and
  • Load shifting be sustained over a period of 36 months.
  • On what basis is funding approved for projects that shift demand between 250kW and 1,200kW?

    Project proposals are considered based upon 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 between 250kW and 1,200kW?

    Four payments will be made for verified demand shifting during evening peak periods (summer 18:00 to 20:00 and winter 17:00 to 19:00) over the contract period of 36 months:

  • 40% of the contract value will be released as a performance payment at the end of the first performance assessment (PA1) period.
  • 60% balance of the contract value will be paid in three tranches of 20%, each payment at the end of a 12-month cycle over the contract period based on demand shifting achieved in the following performance assessments.
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    Eskom can request re-imbursement for overpayment if demand shifting achieved during any of the four 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. 

    Eskom’s SD&L requirements do not apply in the case of 250kW to 1 200kW (kilowatt) projects as this facet of the programme has been designed to promote participation from Black-owned ESCos, Project Developers and businesses as defined in the Broad Based Black Economic Empowerment Act, No 53 of 2003.
     

      

    What are the criteria for projects that shift demand greater than or equal to 500kW (kilowatt)?

    Proposals for projects that could shift demand greater than or equal to 500kW (kilowatt) will be considered on condition that:

  • Projects be submitted by any  Black-owned Energy Services Company, Project Developer or business in the commercial and industrial sectors;
  • Projects be implemented at a single site within 6 months;
  • Load shifting be achieved during peak periods (as specified in Eskom’s Megaflex Time of Use tariff - summer 18:00 to 20:00 and winter 17:00 to 19:00); and
  • Load shifting be sustained over a period of 36 months.
  • Esco basis of funding