The Ancillary Services Agreement (ASA) was introduced in briefing note 4 of the Coal Baseload IPP Procurement Programme (the Baseload RFP).  The ASA will be entered into by Eskom with each seller of power generated from coal IPP power stations being developed under the Baseload RFP, in parallel with a power purchase agreement with Eskom.

Under the Coal Baseload IPP Procurement Programme projects may be required to provide ancillary services to Eskom as grid provider to support the reliable and secure operation of the transmission system by Eskom. The ancillary services will be procured under a separate agreement to the power purchase agreement (PPA), namely the Ancillary Services Agreement (ASA).

Given the current initiatives to promote private investment in the South African electricity market, the execution of the power purchase agreement between BMW South Africa and Bio2Watt’s biogas plants that will bring “renewable energy” to BMW’s manufacturing plant in Rosslyn, Pretoria is sure to blaze the trail for new private power generation and offtake markets

The price of electricity that private producers have tendered in the third round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPP) has fallen due to increased competition and experience, and the entry of developers who can finance projects off balance sheet rather than through a debt-equity mix. This has led to developers searching