Daniel Terungwa

South Africa’s Electricity Supply Commission, Eskom, has launched the Renewable Energy Tariff pilot programme, which aims to supply cleanly sourced electricity through from its Sere Wind Farm to the utility’s business customers.

The programme targets businesses that have corporate renewable energy targets and would like to use renewable power in their facilities or production processes without having to purchase renewable energy assets such as wind turbines or solar panels.

In a statement, Eskom said the programme will enable businesses to use its renewable energy sources to supply up to 100% of their electricity.

“The… programme gives customers a mechanism to achieve their renewable energy commitments to purchase this energy from Eskom, without the initial capital investment of having to own a renewable energy generator or to enter into long-term Power Purchase Agreements (PPAs).

“This offer allows customers to have a 24-hour blended renewable supply to their facility, and allows them flexibility to relocate premises without needing to move renewable energy assets,” the statement said.

The power utility company said depending on usage, customers will be offered declining electricity on a yearly basis.

“The tariff is designed as a declining block tariff. This means that the more green energy a customer purchases as a percentage of total consumption, the lower the rate.”

Customers who take up the programme will be required to sign a contract with Eskom based on how much electricity the business consumes.

“Eskom customers… select an affordable contract, based on the percentage of renewable energy they consume and this percentage will be charged monthly as specified in the contract.

“At the end of 12 consecutive months, Eskom will evaluate the amount of renewable energy in kWh consumed against the contracted percentage, and if the actual capacity is less than the contracted capacity, Eskom will adjust the Renewable Energy Tariff based on the actual percentage. The renewable energy charge payable by the customer will be adjusted accordingly,” Eskom said in a statement.

Eskom Group Executive for Distribution, Monde Bala, said the programme provides businesses an opportunity to gain savings in electricity usage.

“The Renewable Energy Tariff is designed to provide a cost-effective and flexible option for Eskom customers to consume renewable power. It further provides flexible, convenient and short-term power purchases for when you move your facilities. It will be available to Eskom supplied customers whose electricity accounts are up to date,” Bala said.

The programme is initially limited to direct Eskom customers and with clean energy usage capped at 300 GWh per annum per customer.

The pilot programme will run until 31 March 2023.