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South Africa’s Eskom seeks to contract 1 GW of power capacity

The South African state-owned power utility Eskom has launched three programmes expected to supply the country’s grid with more than 1 GW of capacity in a bid to address the load shedding crisis. The company, which targets generators capable of providing more than 1 MW to the network, intends to sign the first power supply agreement as soon as possible. The programmes could later be opened to smaller producers.

The three programmes includes the Standard Offer Programme, to procure power from companies who have existing generation capacity for a period of three years with either static or dynamic tariffs, and the Emergency Generator Programme, to secure more expensive electricity when the grid is significantly constrained. Finally, the Bilateral Power Import Programme allows Eskom to secure imports of power to the country from neighbouring countries. South Africa is already importing an average of 200 MW via the Southern African Power Pool.