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Hedging Eskom tariff escalation with self-generation

Grid tariffs continue rising ~9% p.a. with fixed and TOU charges. Self-generated power locks in a known cost curve for 15–25 years under a PPA.

ALLReviewed 20 Jun 2026Next review 20 Dec 2026

The business case has shifted. Load shedding stabilised, but Eskom and municipal tariffs keep climbing — historically near 9% annually — with increasing fixed charges and time-of-use structures that penalise peak demand.

    Self-generation plus storage:
  • Covers own load first (cheapest electron)
  • Shifts peak with batteries around TOU windows
  • Creates surplus for feed-in or wheeling revenue
  • Locks in PPA pricing for 15–25 years — a balance-sheet hedge financiers understand

For mining and heavy C&I, energy is a major opex line. A firm PPA from a bankable developer de-risks both cost and uptime.

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