Eskom Small-scale renewable energy programme

Eskom IDM is continually extending its portfolio of funding mechanisms and the range of efficiency technologies that is supported to make energy efficient products more readily available to South Africans.

Small-scale renewable energy interventions have been successfully implemented internationally to promote efficient and sustainable use of energy. The Eskom IDM programme, in consultation with NERSA, will therefore be piloting (with immediate effect from 1 June 2012) the inclusion of small-scale renewable energy solutions to further broaden the scope of optimal energy usage.

What is entailed?

The initial pilot phase will target 10 MWs from small-scale renewable energy solutions that will displace or reduce existing or planned electricity supply requirements.

Participating solution will be limited in size to a maximum 1 MW installed peak capacity from a renewable energy solution. For the purpose of this initiative Renewable energy has been defined as:

Energy that is derived from resources that are naturally regenerative or are practically inexhaustible, such as biomass waste/residue, heat (geothermal, solar, thermal gradient, ground source heat), moving water (hydro, tidal, and wave power), and wind energy, produced from zero or low carbon source technologies. For this purpose municipal solid waste will also be considered a source of renewable energy.

Who qualifies?

Small-scale renewable installations will have to meet the following qualification requirements:
Only equipment installed on the host customer’s side of the meter will be eligible.
Systems must be new and in compliance with all applicable performance and safety standards (applicable to all components of the installation). For the list of standards and specifications of interest to small-scale renewable energy installations please click here. Please note that this is not a conclusive list and may be updated and revised as relevant.
Stand-alone systems (i.e. applications that are not grid tied) must replace an existing connection/supply therefore substituting energy that would have been drawn from the grid.
Grid tied* systems must comply with all Regulatory and embedded generation interconnection requirements. Where relevant a letter from the relevant local authority / electricity utility will be required as part of the application to confirm their knowledge and acceptance of the (proposed/designed) connection onto the network.

* The incentive will initially only be available for systems that do not feed any electricity onto the grid. This may include isolated systems with no electricity supply from the grid or configurations where the grid is used to supplement the electricity requirements. *

How to participate?

The incentive will initially be exclusively available under the Standard Offer at a rate of R1.20 per kWh to be paid over the usual Standard Offer contract period of 3 years. Participation details and requirements for the Standard Offer programme is available on this page. The Standard Offer toolkit supplies all the necessary documentation required for submission to the Standard Offer Programme.

Download Standard Offer toolkit

A few additional provisions and requirements are applicable to small-scale renewable energy solutions applying for the Standard Offer incentive:
An electrical design certified by a qualified engineer will be required as part of the application.
A structural design certified by a qualified engineer will be required as part of the application.
A letter from the electricity supplier (Municipality or Eskom as relevant) confirming knowledge and acceptance of the proposed/designed network connection and registration of the project as per NERSA requirements.
Close out and the first incentive payment will be subject to an as built confirmation and an audit of the above.

In time the incentive for small-scale Renewable energy under this pilot will be extended to Standard Product and Performance Contacting in time, depending on market acceptance and incorporating key learnings from the initial incentive offer

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