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NERSA hosts public meeting

4 August 2008 – Public meetings on Eskom’s medium term power purchase programme (MTPPP) will be held on 6 August in Pretoria by the National Energy Regulator of South Africa (NERSA). Additional discussions will take place around cogeneration regulatory guidelines at the same meeting.

Powering1Eskom wants to source up to 3 000MW in the short to medium term through the MTPPP – this will be conducted alongside a pilot national cogeneration programme.

NERSA’s approval will focus on the pricing structure of the MTPPP and electricity prices in the medium term. Under the MTPPP, any feasible generation projects, but not qualified under the PNCP, are provided for. This includes any new plant, capacity increases to existing plant and refurbishments, with capacity increases from 5MW to 1 000MW. The duration of the power purchase agreements will be for a maximum of ten years, ending December 2018 and will relate to proposals received up to December 2008.

Discussions on the cogeneration guidelines will focus on “qualifying principles, financial support mechanism and procurement method, PPA structure, tender process and methodology for determination of the tender ceiling price.”