Cross-border Standard Offer Programme
In response to South Africa’s electricity challenge, the International Trader Business Operating Unit in Eskom Transmission Division has launched the CBSOP to procure power from the region to assist in the reduction of load shedding.
The CBSOP enables Eskom to procure energy on a short-term basis (less than three years) from the Southern African Development Community (SADC) region. This standard offer approach permits 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 independent power producers). The standard offer allows for a static price, which is established each year based on the regulatory-approved cost recovery mechanism, and benchmarks the variable cost of local generation. This programme is designed to simplify the procurement of energy from existing and new facilities in the region.
The CBSOP static rates for the 2024 financial year (FY) are as follows:
| Energy rate (R/MWh) | High season | Low season |
|---|---|---|
|
Peak |
3 638.90 |
1 510.14 |
|
Standard |
909.73 |
849.08 |
|
Off-peak |
606.48 |
606.48 |
* Notes:
- Price is a time-of-use structure that is determined annually before 28 February,
applicable to the next contract year. - High season comprises the South African winter months of June to August, with the remaining
months being defined as the low season. - FY2024 runs from 1 April 2023 to 31 March 2024.
Invitation to participate
Eskom invites cross-border utilities and cross-border independent power producers (IPPs) that meet the qualification criteria stipulated below to submit applications to supply energy to Eskom.
Any engagements with a counterparty to supply energy to Eskom will be subject to Eskom’s applicable counterparty evaluation processes, including technical, financial, and legal evaluation. The programme rules require that all counterparties, including host utilities, participating in the programme be in good standing.
Any applicant who meets the requirements of the programme will be awarded a contract within the constraints of the budgets approved for the programme.
The qualification criteria for the supply of cross-border energy to Eskom are as follows:
- The programme is open to cross-border utilities and cross-border IPPs. (Host utility support must be obtained.)
- An application to sell energy to Eskom must be made in writing.
- Applicants must be inter-connected to the South African Transmission Grid.
- The minimum contracted capacity of a project shall be 20 MW and the maximum contracted capacity shall be based on the availability of transmission evacuation capacity at the connection point.
- Procurement of power will be based on the plant-performance needs of the Eskom Transmission System Operator and will be technology agnostic; the plant must be dispatchable flexible generation that should be able to provide energy, capacity, and ancillary services and should be able to generate between 05:00 and 22:00 in line with cross-border billing requirements.
- The contracts should be of a short-term nature, ideally for a one-year period, renewable on an annual basis, not exceeding three (3) years.
- Electricity must preferably be available to the South African grid within six (6) months of the signing of a power purchase agreement (PPA).
- Applicants must be compliant with the relevant South African Grid Code(s) and have a licence to generate and sell energy to Eskom.
- All contracting will be governed by South African law.
- The contracted currency is to be the South African rand (ZAR).
- All submissions are to comply with the required templates and documentation.
* Please note that each application will be evaluated on an individual basis.
Kindly click below for the CBSOP documents:
Contact details
For more information on the CBSOP, please forward an email to [email protected]
Disclaimer: Eskom reserves the right to terminate or make changes to the CBSOP at any stage of the process if the cross-border supplier is found to be in violation of, inter alia, the South African Constitution, the Prevention and Combating of Corrupt Practices Act 12 of 2004 (PCCA), the Prevention of Organised Crime Act 121 of 1998 (POCA), the Public Finance Management Act 1 of 1999 (PFMA) and Eskom’s policies and procedures.