Are you a Project Developer looking to make a significant impact on your energy consumption, contribute to a greener future, and receive substantial cash incentives? Eskom’s Distribution Demand Side Management Programme (DDMP) is your gateway to achieving these goals. We invite agricultural, commercial, and industrial facilities across South Africa supplied by Eskom’s interconnected grid or a participating Municipality to join us in this groundbreaking initiative. Here’s everything you need to know about the DDMP:

 

Who is it for?

 

Agricultural, Commercial and Industrial facilities supplied by ESKOM from the interconnected grid and are within the boundaries of South Africa. This also includes customers supplied by a Municipality where the Load Management initiative will be implemented. A project developer (PD) may be an Eskom customer or a customer who is fed from a municipality or specialist service provider who is appointed by a customer.

1. Letter of intent: You as the client will complete the letter of intent, appointing  LTM Energy Group as the project leadersTo kickstart the process. Submit an application to Eskom for a project that aligns with their DDMP criteria.

2. Application: Submit an application to Eskom for a project that aligns with their DDMP criteria.

3. Incentive Contract: Successful projects are awarded contracts that include incentives based on achieved demand and/or energy reduction during specified periods. Incentives are provided in Rand per megawatt (MW) or Cents per kilowatt-hour (kWh).

4. Independent Verification: Approved projects undergo independent measurement and verification of their proposed baseline by an Eskom-appointed service provider.

5. Implementation: Projects are financed upfront by either the customer or the Project Developer. Various financing options are available for your convenience.

6. Ongoing Verification: After implementation, projects are independently measured and verified quarterly against the contracted demand and energy savings by an Eskom-appointed service provider.

7. Payment: Eskom pays incentive rebates quarterly over a 2-year sustainability term, totaling 8 payments over two years for achieving the contracted target. The standard incentive rate for all DDMP performance contracting programs is 3 million Rand per MW. Payments are capped at 100% performance, ensuring fairness. Double dipping with other incentive programs is not permitted.

Option 1: Industrial, Commercial, and Agricultural Load Management

The aim of this program is to reduce electricity demand during peak evening constraint periods, from 6 to 8 pm during summer and 5 to 7 pm during winter. Participants can contribute by either clipping (reducing usage) or shifting (moving load to non-constraint times) peak demand. Here are the key details:

• Open to all sectors except residential.
• Minimum project size: 0.5MW.
• Single-site submissions.
• Projects must be implemented within six months.
• Performance measured quarterly over a 24-month term.
• Focus on reducing demand during Eskom-defined evening peak periods.
• Proposal submissions adhere to specified templates and documentation.

Option 2: Energy Efficiency Programme

This program incentivizes energy-efficient projects that might not be considered in the short term. Participants receive incentives from Eskom (up to 3 million Rand) for project implementation, in addition to ongoing energy savings and reduced utility bills. Here are the key details:

• Open to all sectors except residential.
• Projects must achieve a minimum average demand reduction of 100 kW measured between 6 am and 8 pm daily (excluding weekends). The minimum energy savings applicable are 91,000 kWh/quarter.
• Maximum of 5 sites per entity for project proposals.
• Projects must be implemented within six months.
• Performance measured quarterly over a 24-month term.
• Incentive rate of 41,029 cents/kWh based on average demand savings over the defined period.
• Proposal submissions comply with required templates and documentation.

Conclusion 

 

Join us in shaping a more sustainable energy future while receiving substantial incentives for your efforts. The Eskom DDMP is your opportunity to lead the charge in energy efficiency and demand reduction. Together, we can create a brighter and greener South Africa. Don’t miss out; get started today!