South Africa state power utility Eskom is expected to reveal the first cogeneration projects that will form part of the Pilot National Cogeneration Project (PNCP), although it is undetermined if it will reach the target of 900 MW.

The PNCP is an initiative that will lead to the larger medium-term power purchase program (MTPPP), which is already calling for bids to be submitted by the end of the year with contracts not exceeding past December 2018. Final contracts will be decided by March 2009, although some could be approved before the year’s end.

Eskom is currently working to complete both proposals in an effort to reach 3,000 MW of cogenerated power by 2012.

Companies that have issued bids include PetroSA, which features its biogas-to-energy project and the Mondi Richards Bay project.

National Energy Regulator of South Africa Bianka Belinska, Senior Manager for Energy, Infrastructure, and Operations, noted that South Africa had the potential of reducing its carbon credits by 2.9 million tons of CO², while the price a ton of CO² was currently about €10 a ton.

Reportedly, 16 more cogeneration projects are currently emerging throughout the country.